Financial Management Report: Accounting, Control, and Strategies

This report provides a comprehensive overview of financial management, encompassing various aspects such as decision-making approaches, both formal and informal, and the factors contributing to effective decision-making. It delves into the evaluation of these approaches, techniques, and stakeholder management. The report explores key financial principles used in financial strategies, emphasizing consistency, transparency, money management, and ethical constraints. It highlights the role of management accountants, including stewardship accounting, long-term planning, and the formulation of Management Information Systems (MIS). Furthermore, it examines accounting control systems, their values, and the techniques used for fraud detection. The report also includes a case study of Brightsun Travel, illustrating the application of financial principles and accounting controls in a real-world business context. It concludes by emphasizing the importance of financial management in organizing funds and developing effective financial techniques for enterprise quality, development, and growth. The report offers valuable insights into the interconnectedness of financial strategies, accounting practices, and the role of financial professionals in ensuring organizational success.

Financial
Management

Table of Content
 Introduction
 Different types of formal and informal approaches used in decision-making
– Evaluation of approaches, techniques and factors that contributes in effective decision making
– Stakeholder management and management of conflicting objectives of stakeholders
– Value of management accounting techniques
– Techniques of fraud detection
 Approaches to support decision making
 Key financial principles use in financial strategies making
 Key financial management principle
 Evaluation of key financial management principle
 Role of management accountant.
 Accounting control system and their values
 Role of accountant and control system
 Conclusion


Introduction
Financial management pertains to strategical or managerial planning, coordination, direction
and effective controlling of all the major fiscal functions in corporation or business entity. This
involves systematic application of managerial principles and concepts in management of fiscal
resources and assets of corporation and perform a crucial part in organisational and fiscal
management.

Different types of formal and informal
approaches used in decision-making
Financial management has appeared as the most important and interesting fields both for
academic research and for the examination of executives of practice finance. This included
different aspects that are based on efficient decisions taken during the period by an
organization. Comprehension of finance as resources understands in general way. While in
real sense these words are money analysis and their critical flow to more efficient activity of a
new company.

Evaluation of approaches, techniques and factors that
contributes in effective decision making
There are two types of approaches of decision making that are as follows:
 Formal
 Informal

Approaches to support decision making
Formal and informal methods are effective in making significant decision that will increase the
future sustainability and profit margin in Brightsun Travel. Financial counsellor introduced
systematic strategies and informal solutions to the issue and made decisions to expand the
number of buyers for their company and to grow share of the market in the market.

Key financial principles use in financial
strategies making
In present dynamic business world company adopt the suitable financial system according to
the working structure and formal of reporting. Financial management have certain
principle which are effective in establishing a legal and financial system that manage and
control important financial resources. Some of these are defined underneath:
 Consistency
 Transparency

Cont.…
 Money management
 Integrity
 Setting objectives to attain financial aims
 Ethical constrain
 Increasing shareholders wealth

Key financial management principle
Financial management is the obtaining, funding and management of different business
resources which help to achieve fund stability in the longer term. Important economic
management concepts contribute to making successful financial decisions for future funding
access in an organization. There are several concepts, such as money management, managing
money, risk perception and unforeseen event strategy. There are several values. These
principles contribute to efficient financing techniques and to lengthy-term financial sustainable
development.

Evaluation of key financial management
principle
The key principle of money management helps an organization to develop financial policies
and strategies to ensure the success. Brightsun Travel economic department refers various
principles to assist in the formation and lengthy-term financial sustainable development of
financial techniques.

Role of management accountant
Business and company accountant job in a specific company has been illustrated. They are
responsible for carrying out a certain range of activities in order to ensure that their
companies have financial stability and financial management required and, from now on,
to support the business. The designation and the achievement of an organization are
determined by them.
There are certain role of management accountant:
 Stewardship accounting
 Long and short term planning
 Formulating MIS

Cont.…
All other use of management accounting technologies is necessary in order for useful decision-
making to be incurred, analysed and submitted with financial information. Some of the
following are:
 Cost forecasting
 Managing risk

Accounting control system and their values
The method and procedure related with recording and summarising each and every business
transaction in a proper acceptable format which gives actual and real financial position of
company is known as accounting. Internal control is indeed an efficient financial reporting and
monitoring process to ensure operational efficiency goals are met and optimum profit margins
is increased over a given time period.

Cont.…
Thus internal control gives regular feedback to accounting system that make sure that every
activities is running as per the desired guidelines. Some basis component which is related
with system are:
 Accounting norms and compliance
 Assets security
 Make financial reports

Cont.…
Cost control techniques:
This is consider as important procedure to determine and eliminate company spending by
using taxation system to increase profit for an organization. Brightsun Travel are using this
method to make comparisons or actual results to the perceptions of the spending plan and
in scenario of actual costs are greater than scheduled.
 Internal and external control:
 Budget
 Internal and external audits:

Role of Management accountant and control
system
The management accountant and control systems play an essential role to facilitate ethical and
ethical money management, while accountants play different role, such as routine maintenance
of MIS reports, low and high-term planning, organizational preparation and planning
leadership. business leadership processes and management leadership. The system of
accounting control and accounting support development's ethical finances by maintaining
autonomy and impartiality, honesty and privacy, ethical integrity and actions which have a
positive impact on the company.

Conclusion
Financial management helps organize funding inside the business and make good use of it.
This also helps to develop efficient financial techniques for enterprise quality in development
and growth. Financial advisor adopts different formal and informal approaches for effective
company decision making.

References
 Brigham, E. F. and Houston, J. F., 2012. Fundamentals of financial management. Cengage
Learning.
 Chandra, P., 2011. Financial management. Tata McGraw-Hill Education.
 Renz, D. O. and Herman, R. D. eds., 2016. The Jossey-Bass handbook of nonprofit
leadership and management. John Wiley & Sons.
 Molina, C. A. and Preve, L. A., 2012. An empirical analysis of the effect of financial
distress on trade credit. Financial Management. 41(1). pp.187-205.

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