Financial Management System

There are a wide range of activities that can be considered as financial activities. Many organisations, particularly large ones, have considerable numbers of daily transactions. The jobs of a bookkeeper, financial management system sales representative, clerical worker, and other personnel involved in record keeping can fall into one of three categories. The characteristics of each activity are designed to reflect the nature of the organisation's financial management system.

All corporate management systems, whether financial, operational, or personnel oriented, feature some aspect of the role of financial management. But, it is generally accepted that a well-designed corporate financial management system saves money, reduces risk, and assures long-term financial management system viability. In fact, corporations would lose millions of dollars every year to financial mismanagement.

The most common phases of a financial management system are:

- Design and development

- Implementation

- Ensures integrated data

- Handles natural disasters, power failures, and computer viruses

- Supplies accurate reporting and analysis

- Manages time and expense control

- Tracks assets

- Contributes to a secure corporate financial image

- Reduces risk

- Ensures maximum profits

As your organisation grows, there may be a need for more than one financial management system. When multiple system functions are necessary, the systems are generally described as coupled processes (also known as dominance). This allows other financial management system organisations to not only share the accounting function, but also operate at different speeds according to a common accounting language. For instance, in a credit department, the financial management should be able to read the same information at the same moment as the credit department reports it to the board of directors.

For maximum profits, competition in markets is likely to speed up. The response to competition often requires cooperative financial management system organisations to evaluate new technology and seek out resources. At the same time, the need for sensitive finances such as financing and loans creates new innovative regulation. These are six of the key factors shaping the future of finance:

- Increased regulation

- An onslaught of new regulations for financial institutions

- Standardising banking relationships with lending institutions

- Regulation of financial products

- The conversion of fixed income to contingent income in the mutual funds business

- Advertisements of financing products

To stay competitive, corporations will need to package up competitors and know how to deal effectively with both. A properly designed financial management system needs to both satisfy the current needs, while positioning future needs, as well as anticipate them in advance.

A financial management system is like a house with the plumbing and electrical works all in one. But, a house without plumbing is like a house with a leaky roof. But, many of your competitors are failing to expand their concept to get the above benefit. In effect, they are either neglecting their financial management or have nothing up their sleeves.

Understanding the value of good financial management is something many companies make a priority. And, while the Department of Labor from the United States Department of Labor has reported that this is the job with the highest growth rate, the US conditions are improving slowly. The question then is what are the key activities that require attention to financial management and what are the critical skills needed to get the financial management system job done. Financial managers today need business knowledge, and the skills needed to perform this task can be acquired from many of the consulting firms that showcase their financial skills and using those skills, interpret the societal demands. Firms such as Booz and Company and The Charles Schwab Corporation have positioned themselves as winning financial experts.