Financial Management Principles for Long-Term Financial Sustainability

FINANCIAL MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1. Implement various methods used to assist successful movements........................................4
P1. Apply various formal and informal methods used to help the dynamics of success in some
official models.............................................................................................................................4
M1. Analyze formal and informal approaches applied to support decision-making addressing
both advantages and disadvantages.............................................................................................6
LO2. Analyze the governance standards of funding used to support powerful budget systems.....9
P2. Analyze key administrative standards related to funds required by associations to create a
successful monetary system for long-term budget maintenance.................................................9
M2. Critically analyze the key financial management principles and their importance in
delivering effective financial strategies for long term financial sustainability..........................11
LO3. Evaluate the role of management accountants and accounting control systems..................12
P3. Evaluate the role of management accountants and their value as part of an integrated
system........................................................................................................................................12
P4. Evaluate the use of accounting control systems and their value as part of an integrated
business system..........................................................................................................................12
M3. Critically evaluate the role of management accountants and accounting control systems to
support a culture of ethical financial management....................................................................12
LO4. Evaluate ways in which financial decision-making supports sustainable performance.......15
P5. Evaluate the ways in which financial decision-making is important for supporting long
term financial sustainability.......................................................................................................15
M4. Critically evaluate how different ways of financial decision-making support long-term
financial sustainability...............................................................................................................17
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
The essential execution of a procedure is based on three basic factors: the association of an
external situation, a reasonable internal vision of the capabilities of the center and the support
hands and careful performance and observation. This article discusses the role of money in vital,
dynamic, interpretation, execution and observation reconciliation.
Reasonable rationalization implies dimensions that define the vision and a specific strategic
focus. This is crucial because the agreements are ultimately fundamental for the distribution of
the activities and would not be appropriate if the activities were unlimited. This article aims to
clarify how money, budget objectives and monetary performance can play increasingly critical
roles in the critical configuration and dynamic approach, especially in the point of use and
observation.
The long-term financial planning strategy provides the regional council with a tool to help
determine options for strategies, administrations and other diversionary issues by using
standardized agreements according to an understanding constrained by nine standard budgets to
help the peel region become fairly resilient. The strategy provides the Council with better long-
term data when considering numerous negotiated options that affect administrations, such as
affordable long-term housing strategy, affordable transport and energy from residual resources. It
ensures that the elements, for example, the impact of the cost / convenience rate on the resident,
the liability and retention rates and the incentives for the money will be considered as
determinants of these options.

LO1. Implement various methods used to assist successful movements
P1. Apply various formal and informal methods used to help the dynamics of
success in some official models
Decision making is not an easy task for any organization; lot of analysis and critical thinking
requires before reach to a particular conclusion. There are certain approaches which are preferred
by organizations to support their effective decision making process:
Formal Approach:
In this approach; companies take support of their internal sources and formal authorities to take
decision. Here Unilever has been taken as example to understand how firms use formal approach
to support effective decisions. Some of the methods of formal approach have been discussed
below:
Structure: Each specific unit is led by its own leader, who, in theory, is better prepared to
understand the requirements and issues of that particular unit. This allows for the consolidation
of implementation data at the administrative level where the official level can directly access the
most relevant data for objective and management purposes. This defines the content of the
organizational activities and only feeds the consequences of tasks that make the stools go up to
the officers and the governing body (M.E. Porter, 1996).
The structures of the corporate authorities emerged to separate the dynamic movement. The
execution of the mill association chart reveals a number of important powers begin with the
administrator, the CEO and other official officials at the top while the official officers set the
goals and influence of the organization. Supervisor ranks below the official level are responsible
for implementing these goals in their areas of responsibility or departments, which are organized
by an adequate flow of data from the directors.
A hierarchical structure that separates agency functions into specific offices allows
administrators of these departments to manage problems and create procedural and wording
efficiencies incorporated into their specific offices. It likewise makes the level of business
administration where effort information is created, tested and saved for the efficient future

operation of the department, just as open as those in higher management than accused of
organizing a large enterprise (M.E. Porter, 1996).
Processes: The steps suggest easy. More broadly, they can be classified as assortments of
commissions and joint exercises - and only together - that modify return contributions. Within
organizations, these sources and data products can be managed as resources, data, and
individuals. Common application scenarios include the development of new products,
application for satisfaction and customer support; Investors are extremely smart but also the
same in terms of distribution of resources and energy.
Systems: Managers must quickly access the data to draw conclusions on key issues related to
revenue, advertising and operations. Organizations collect a variety of data processes, including
customer records, process information, statistical research, financial accounting records, data
collection and inventory information and personal property records. However, most of this
information is stored in idle department problems, making it difficult for leaders to get
information quickly (M.E. Porter, 1996).
The control information system improves and accelerates data processing by placing the
information in a single position open with the system. The result is a quick and well-managed
election.
Informal approach:
This approach supports decision making by considering the facts other than formal approach. It
focuses on non organizational outcomes with effect of taking decision. Some of the methods of
informal approach are discussed below:
Relationships: When two people enter into a relationship, the amount of choices they should
make about their killings is basically due to the fact that their respective circles of choice cover.
This is not necessarily based on the fact that these choices have to be made together, but simply
because you see someone influencing the other person on all the choices you make
independently (M.E. Porter, 1996). In order to maintain a good relationship, each facilitator
should think of his partner in any situation. Whether you are deciding on options together or