Different Approaches for Effective Decision Making in Financial Management

FINANCIAL
MANAGEMENT
PRINCIPLES AND
STRATEGIES
Name of Student
Name of the University
Author Note
Different Approach used to support Effective decision Making
Role of Management Accountant and Accounting Control system
Sustainable performance with the help of Effective financial decision
Learning outcome
Financial management principles which support effective financial
strategies

Different Approach used to support Effective decision Making
Knowledge
management
system
Explicit
knowledge
Tacit
knowledge
(also called communicative knowledge) is Knowledge that can be instantly expressed, organised,
retrieved and put into words. It can be effortlessly conveyed to others. The information included in
Records, manuals, audio visuals are good models of explicit knowledge
It is the form of Knowledge that is hard to transmit to another person by medium of inscription or
articulating it. The tacit features of knowledge are those that cannot be codified, but can only be
communicated by training or individual experience
Tacit Knowledge
Explicit
Knowledge

The role of stakeholder in decision making using the knowledge tacit
knowledge.
Financial statistics is used by a variety of investors, this information therefore, needs to be truthful to help, and to conform to
legislation. Financial information has to follow a severe auditing procedure. The figures of the financial data therefore, has to be
correct, trustworthy, up-to-date and comprehensible.
Different stakeholders have different needs from the organisation’s financial accounts
Company Managers – require the information to empower them to handle and run the business proficiently.
Shareholders – will require the information to evaluate how successfully management are carrying out the business, how much
they can extract in dividends and how lucrative the business is to invest in for long term.
Trade contracts – trader or the supplier of the raw material on credit to the business, wants the information to know
organization credibility in making payment.
Finance Providers – such as banks who will need to identify that the company can have enough money for the repayments of
loans provided.
The Government – how much tax the company is owing to pay and also any taxation which the establishment gathers on behalf
of the administration .