Financial Management Report: Cost Control and Accounting Systems

This report analyzes financial management, focusing on Ray Financial Adviser Limited. It begins with an introduction to financial management, followed by an overview of various management accounting approaches and their application. The report emphasizes the importance of stakeholders in the decision-making process, examining how their preferences influence policy formulation. It then delves into the role of management accounting techniques in cost control, including marginal and standard costing, and the utilization of accounting control systems to prevent fraud and ensure ethical practices. The conclusion highlights the critical role of management accounting in organizational decision-making and the importance of satisfying stakeholder needs in a competitive market. The report also includes a reflection on the learning experience, emphasizing the practical application of financial accounting theories.

Financial Management

Table of Content
■ Introduction
■ Various approaches of management accounting
■ Importance of stakeholder in decision making process
■ Role of management accounting techniques in cost control
■ Uses of accounting control system
■ Conclusion
■ References
■ Reflection

Introduction
Financial management is a process of applying specific principle of management on
financial resources. In other words it refers as tool of accounting which help in utilizing
financial resource in a significant way. To understand the concept of uses of financial
management in a better way Ray financial adviser limited has been taken. This is newly
established entity in United Kingdom.

Various approaches of management
accounting
Ray financial adviser limited uses different financial principles and approaches to take
effective decision regarding firm and also give essential guideline to there clients. They
uses knowledgeable approach for decision making. This approach states that to run an
organization effectively there owner must have sufficient knowledge regarding the business
framework.

Cont.…
Ray enterprises uses different kind if techniques for decision making these are as follows:
■ Operational management technique
■ Managerial accounting technique
■ Statistical technique
■ Socio economical factor
■ Financial factor
■ Production factors

Importance of stakeholder in decision
making process
Stakeholder includes all the relative parties whose presence is directly and indirectly effect
business organization. Customers, creditors, investors, shareholders all are consider as
stakeholders. Stakeholders play essential role in decision making process, as organization
took decision on the basis of their stakeholders preferences. Ray financial adviser limited
formulate their policies after analysing their stakeholders requirement.

Cont.…
Strategies for managing stakeholder conflicts:
Business organizations needs to implement polices after identifying requirements of
all categories stakeholders. For this purpose they need to implements short term and long
term goals of there different categories of stakeholders.

Role of management accounting
techniques in cost control
Management accounting is a method of accounting process which used by managers to
record, analysis and collect data in a way which help in taking essential decision. Managers
uses various managerial accounting techniques to efficiently run their managerial process.
Management accounting techniques included marginal costing, standard costing, financial
statements, trend and ratio analysis etc.

Cont.…
Ray financial adviser limited adopt this accounting tool to fulfil these objectives:
■ Controlling cost
■ Maximizing worth of shareholders

Uses of accounting control system
Business organization uses accounting control system for prevention of fraud and unethical
issues generated within the organisation. Accounting control system is help in formulating
polices and procedure in a ethical ways. This will also included financial management
system which help in controlling financial transaction related activity and take essential
decision regarding investing, financial proposals.

Cont.…
To reduces the chances of these types of issues manager of this organization implement
rigid polices related to their securities. They properly maintain their accounting records and
check and verify their recorded monthly, even they cross check vouchers and proof
statements of business activities. Accounting control tools help in optimality utilization of
resource use in business activities, these will help in managing each documents in
systematic way which help in managing time.

Conclusion
From the above analysis it has been concluded that management accounting plays essential
part in taking essential decision regarding running business organization. To maintain
position in this competitive market place managers needs to satisfied wants and needs of
their stakeholders and formulate policies in a way by which they can achieve their
organizational goals by giving full satisfaction to their employers.

References
■ Loke, V., Birkenmaier, J. and Hageman, S. A., 2017. Financial capability and asset
building in the curricula: Student perceptions. Journal of Social Work
Education, 53(1),.pp.84-98.
■ Bempah, B. S. O., 2017. Determinants of sound budgeting and financial management
practices at the decentralised level of public administration. OECD Journal on
Budgeting, 16(2), pp.109-128.
■ Xie, K.L., So, K. K. F. and Wang, W., 2017. Joint effects of management responses and
online reviews on hotel financial performance: A data-analytics approach. International
Journal of Hospitality Management, 62.pp.101-110.

Reflection
Financial accounting is strategic management process. It is systemic process of analysing,
recording and controlling financial resources. This project help me to learn so many things
regarding making PPT and report. During the preparation of this project I have learn the
meaning of management accounting. Uses of Financial accounting theories in practical
life . How these theories will impact on running business organization.

Thank You