Managing Financial Resources Essay - Stratford Yachts Ltd

MANAGING FINANCIAL
RESOURCES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Evaluating the financial and management accounts as well as similarities in these terms 1
2. Ascertaining the requirement of financial statements in non-profit and profit organisation. .3
3. Determining the needs of various stakeholders of an entity...............................................4
TASK 2............................................................................................................................................5
1. Measuring financial ability of Stratford Yachts Ltd...........................................................5
2. Presenting Stratford Yacht's report.....................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
To improve firm's financial condition and bring stability in economy, there is the need to
have adequate changes in operations. satisfactory management of funds will be fruitful for an
enetity in terms of having proper analysis over the financial accounts of the business. In the
present report, there will be analysis of financial data set of Stratford Yachts Ltd in order to
determine their profitability, liquidity and management of various resources. Therefore, there
will be proper management of all the resources which will be fruitful for the managers in terms
of managing the financial health and internal economy of the organisation.
TASK 1
1. Evaluating the financial and management accounts as well as similarities in these terms
The framework of financial and management accounts is based on making records of all
activities such as inflows and outflows of funds. However, it can be understood as:
Management accounts:
In relation with the management accounting techniques, these are accounts which were
being prepared by the separate units as per recording of the daily activities. The analysis and
outcomes derived from such reporting will be helpful in making appropriate organisational
decisions (Barr, Margaret Budgets and financial management in higher education, 18). It helps
in managing the funds for the operations in better cost control that will make effective execution
over work and workforce. It includes preparation of various budgets and forecasting statements
that will be helpful for making the effective determination of costs to be implicated in
operations.
Financial accounts:
These are the accounts which were made for external users such as investors,
governmental bodies, suppliers, banks and employees in organisation. Therefore, it will be very
useful for decision making as well as determining the profitability of entity (Bryce, Herrington
Financial and strategic management for nonprofit organizations, 17). It mainly includes the cash
flow statements, income statement and statement for change in equity as well as balance sheet of
the firm.
Difference between financial and management accounts:
Basis Financial Accounts Management Accounts
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Requirements These accounts are prepared
for disclosing the financial
position of the entity in the
market. This disclosure will be
helpful in terms of attracting
the large number of investors
for capital collection.
The preparation of the reports
and accounts helps in internal
control and accurate decision
making which will enhance the
organisational ability.
Accuracy These contain the records of
all units in a firm in a
summarized statement. It will
be used for effective analysis
over the financial position of
business (Grabher, Gernot, and
Jonas König). "Performing
network theory. 17).
These accounts contain details
relevant with the costs,
revenue and profits over
operating activities. Thus, the
information belongs to all the
departments in the
organisation that will be
monitored and have effective
cost decisions.
Reporting focus It focuses over creating the
financial statements and
presenting the annual
disclosure in which they
mainly ascertain the turnover.
It is more concerned with
operational reports which are
separately prepared and
distributed in the organisation.
Standards There will be influence of
IFRS, GAAP, FRS and various
standards that will be
necessary for accurate
reporting and proper use of
techniques to present the
reports.
There is no such requirement
of any standards as it is only
considered by the internal
users for gaining the
appropriate information
(Loucks, Daniel and Van
Beek. Water resource systems
planning and management,
17).
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