MANAGE BUDGETS AND FINANCIAL PLANS

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MANAGE BUDGETS AND FINANCIAL PLANS
MANAGE BUDGETS AND FINANCIAL PLANS
Name of the Student
Name of the University
Author Note

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MANAGE BUDGETS AND FINANCIAL PLANS
TASK 2
7. The three ways through which the finance team can ensure to perfrom their roles competently
are:
 Correct Accounting Entries: It is the duty of the finance team to make sure that all the entries
that are being made are done correctly and there should be supporting documentation for the
validation of each entry. In several organziations, the financial controller does have the
responsibility in managing the accounts payable, managing cash, disburstment of payroll and
reconciliation of accounts.
 Data Analysis: The task of the finance team is not only to maintain proper records of
accounts but also they should have the large volumes of data and also to understand well.
They should perform the analysis to make sure that it does have the perspective of the
numbers that has been recorded. It can happen that the higher authority can ask for the
opinion upon the analysis that has been done by the fianance team1. If the opinion that has
been shared is considered good then it may happen that the financial planning will be
considered for long term plan.
 Reporting: The financial team does have the main role in performing the financial reporting.
The statements that has been considered by the finance team are balance sheet, cash flow
statements, asset and financial projections. The financial controller has the duty to ensure that
the financial statements that are recorded are true and fair.
1 Flower, John, and Gabi Ebbers. Global financial reporting. Macmillan International Higher Education,
2018.

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MANAGE BUDGETS AND FINANCIAL PLANS
8. The main resources or system that finance personnel may need to manage financial
management processes successfully are as follow-
 Knowledge in computer – Computer plays an important role in accounting and finance. The
accounting process has become more precise and faster due to the computer. If the
information to be processed is complicated, then doing accounting manually will become
difficult and will take a lot of time and people2. Hence, knowing computers is essential for
finance personnel to manage financial management effectively.
 Record keeping system – In financial management, the record-keeping system is essential to
measure the financial position of the business. The directors of the company can make big
decisions with the help of the record-keeping system. The company can keep track of every
transaction, which is important for the company to report this information for filing tax.
 Hiring human resources – This resource is the foremost important system in managing the
financial management processes successfully. The manager has the responsibility to hire
team members or to access temporary staff from consultancies3. The manager must hire
potential candidates whose capabilities match the requirement. Hence, the manager is
responsible for evaluating the skills and knowledge of the existing staff and identify if any
skills and knowledge are needed to be filled from outside.
2 Leuz, Christian, and Peter D. Wysocki. "The economics of disclosure and financial reporting regulation:
Evidence and suggestions for future research." Journal of accounting research 54, no. 2 (2016): 525-622.
3 Acharya, Viral V., and Stephen G. Ryan. "Banks’ financial reporting and financial system
stability." Journal of Accounting Research 54, no. 2 (2016): 277-340.

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MANAGE BUDGETS AND FINANCIAL PLANS
9. The process which that is to be implemented in monitoring actual exependiture and contolling
of costs:
 Accounting: The money that has been raised for the organization is the crucial part of the
process of financial management. This has not be referred to the accounting system or
bookkeeping, it is related to the money itself.
 Budgeting: The process that has been made which includes expenditure, income, expenditure
and also the analysis upon the income and expenditure4. It does also helps in creating the
cashflow forecast.
 Financial Control: The system of financial control helps in provides security related to the
finances and assets of the organization. The system also helps in providing checks and
balances which help the organization to prevent fraud or any misappropriation of policies and
certain procedures.
11. The five docuemnts that has been help in the effectiveness of financial management process
in the work team are mentioned here:
 Revised Bugets.
 Cost breakdown structures.
 Expenditure forecasts.
 Records of the cost management.
 Cost management plans and strategies.
4 Call, Andrew C., John L. Campbell, Dan S. Dhaliwal, and James R. Moon Jr. "Employee quality and
financial reporting outcomes." Journal of Accounting and Economics 64, no. 1 (2017): 123-149.