Articles Tagged ‘Economic’
Effective financial management is one of the key areas in the management of working capital and is basically the same in all countries and all companies. As more liquid assets of the company supplying the means of paying bills as they become due and serves as a buffer fund to cover unforeseen expenses and reduce the risk of a liquidity crisis. The box is the common denominator which can be reduced all liquid assets such as accounts receivable and inventories. The box is kept in a current account in a commercial bank that earns interest. Efficient cash management is founded on three basic strategies: 1. Cancel the accounts payable as late as possible, without damaging the credit standing, but taking advantage of any favorable discount for prompt payment. 2. Rotate inventory so quickly, avoiding stock-outs that can result in the closure of the production line or a loss of sales.. 3. Collect receivables as quickly as possible without losing future sales by the fact collection tec...
Financial management is closely related to decisions concerning the size and composition of assets, the level and structure of the financing and dividend policy by focusing on two primary factors such as profit maximization and wealth maximization to achieve these objectives one of the most popular tools for financial management to be effective, it is financial planning, the ultimate goal of this plan is a "financial plan" which lists and describes the company's financial tactic also ahead forecasts are based on different accounting and financial statements of the same. Another useful tool is the management control, which guarantees a high level in achieving the goals set by the creators, managers and implementers of the financial plan. In addition to these tools, there is a financial analysis, whose cornerstone is laid on information provided by the company's financial statements, taking into account the characteristics of the users who are targeted and specific objectives that g...
One of the biggest problems that organizations have today is the lack of tools that allow you to permanently assess the possible deviations that occur within its core operations, it is essential to forge a set of tools to help to improve their work in front of the whole enterprise. Economic organizations and institutions designed for people to achieve individual and collective ends, have at present a great challenge in front of the control systems that apply to the activities of their daily operation, it becomes feasible to establish some points of support provide the tools necessary to have a good system of inspection and verification, which in the short term give us lights to assess whether procedures are being implemented are adequate and that we provide the most benefit. Since organizations can plan and implement changes in its fundamental nature and structure of the above, take on great importance the concepts of efficiency as they affect relations between the organization an...
Are the provisions relating to preparation for the submission of the statement of changes in financial position expressed in pesos of purchasing power at the balance sheet date. The goal is to provide relevant and focused on a period, so that users of financial statements with sufficient information to: a) Evaluate the company's ability to generate resources. b) Assess the reasons for the differences between net income and funds generated or used by the operation. c) To assess the ability of the company to meet its obligations to pay dividends, and if necessary, to anticipate the need for funding. d) To assess the changes in the company's financial situation arising from investing and financing transactions that occurred during the period. The basic financial statement shows (in pesos) the resources generated or used in the operation, the main changes in the financial structure of the entity and its final reflection on cash and cash equivalents through a period of time. The t...
GENERAL PURPOSE FINANCIAL STATEMENTS These states are those that are prepared at the close of a term to be known by users indeterminate, with the main spirit serves the common good of the public to assess the ability of an economic entity to generate positive cash flows. Should be characterized by their status, neutrality clearly and easily. They are general purpose statements, the Basic Financial Statements and Consolidated Financial Statements. Basic Financial Statements Balance Sheet: This statement should relate the liabilities and assets, in order to be recognized that it can determine fairly the financial position of the economic entity at a given date. Statement: The sum of revenues, costs, expenses and restatement related properly we must cast the net income. State of Change in Equity Statement of Changes in Financial Position Cash Flow Statement Consolidated Financial Statements All those who present the financial position, results of operations, changes in equity ...