Financial Management: Sources of Information, Contingency Plan, Budget Analysis, Cash Management, and More

Running head: Financial Management
Financial Management
Name of the Student:
Name of the University:
Author Note:

1Financial Management
Part A
1) The two sources for information on estimation of costs which might help a manager are:
 Budget Analysis
 Past expenses records
2) The three sources of external banking records that are used are keeping records are:
 Generalized Accounting Book: The book includes all journal and ledgers, which
is grouped into general and subsidiary categories.
 Cash Book: It includes all the accounting for payments done and receipts
collected.
 Banking or financial records: It includes cheque books, deposit book, and the
bank statements (Rostamkalaei and Freel 2016).
3) The company can use data analytics tools as a source for filtering and refining the data
available.
4) Contingency plan a risk management and an assessment tool, which perceives all
possible future events and circumstances. It is a post period plan after occurrence of an
event to cure risk. The plan is a type of fallback plan or plan B (Lestari et al. 2018).
The reasons for having a contingency plan are:
 Preparation: Everyone should be prepared for the worst and unforeseeable
circumstances, which can disrupt the daily operations of a business.
 Flexibility: Every business should be flexible and proper action could be taken if
any circumstances arises.
 For not creating an environment of panic in the business.

2Financial Management
 The best thing we should have a contingency plan is to reduce and eliminate
losses in these cases.
The steps for developing a preparing a contingency plan are:
 Identifying the underline the key risk, which can disrupt the business
environment.
 Prioritizing every and different kind of risks
 Customization of Contingency plan according to the business environment
 Maintaining learning and reviewing the plan with changing environment
The specific areas to include the contingency plan are:
 Insurance: In case of extreme natural events and loss of goods due to theft, fire
and others business can protect itself from insuring there products (Yong and Tan
2017).
 Setting up a dedicated emergency reserve fund.
 Proper training and guidance of work role to be played at the time of contingency.
5) Financial plan is all about setting financial goals and plans to achieve those in the long
term; it varies according to need and demands of investors.
It include the current financial position, goals and needs, requirement and return from
money along with defined period for investment, risks the investors is able to bear and
the asset class permissible to invest.
6) The external factors, which can affect the financial planning is the economy and the
environment where a business operates. The internal factors can be improper use of
funds, lack of skills to utilize the funds and others.