Issues in Financial Management
Controllers, corporate treasurers, CFOs and other financial managers should be familiar with these issues in financial management. Many are old concepts, but they often merit revisiting, especially for those new to the field.
Invoice Discounting encourages faster payment of bills by customers, reducing accounts receivable. It often is used in tandem with penalties, such as the charging of interest, for late payments.
Also read on to see how cash rich companies are using the concept of Invoice Discounting in reverse, as a means to extend needed financing to suppliers that cannot obtain bank credit at reasonable rates, or at all.More »
1. Barter Exchanges
Barter Exchanges are a means for cash poor companies to trade products or services, sometimes at significant implicit discounts from their normal cash prices, thereby supporting their continued operations in difficult times.More »2. Benchmarking
Benchmarking is the process of finding relevant points of comparison for financial and other quantitative analyses. To a large extent, Benchmarking is as much an art as a science. Do it incorrectly, and you can promote flawed decision making that is highly costly to the organization. Moreover, clever corporate politicians realize that they can push decisions in their desired direction through a crafty choice of Benchmarks in their analyses.More »3. Budget Exercises
Some companies have frequent budget exercises as a matter of course, adding to the ongoing level of stress experienced by people in controller positions therein.More »4. Capital Budget
Capital Budgets set expenditure levels for long lived assets that are supposed to generate returns over an extended number of years.More »5. Data Security
Data security is a major issue of concern in the financial services industry, with huge potential liabilities. Accordingly, it involves not only information technology staff, but also risk management and compliance personnel, as well as controllers. Furthermore, financial management professionals in other industries need to be familiar with the issues involved.More »6. Free Credits
Free Credits have long been the financial lifeblood of securities, essentially free money to finance their daily operations.More »7. Invoice Discounting
Invoice Discounting encourages faster payment of bills by customers, reducing accounts receivable. It often is used in tandem with penalties, such as the charging of interest, for late payments.
Also read on to see how cash rich companies are using the concept of Invoice Discounting in reverse, as a means to extend needed financing to suppliers that cannot obtain bank credit at reasonable rates, or at all.More »
