7 principles of financial management

Generally, financial management are all activities that relate to how to obtain working capital funding, how to use or to allocate funds, and manage the assets owned to achieve the main goal.

In practice, the financial management is the action taken to safeguard the financial stability of the company. Implement financial management certainly is not easy, it takes the principles that can underlies the financial management. Here is the 7 principles of financial management need to be aware of.
7 principles of financial management

7 financial management Principles you need to know

Accountability

Accountability is the legal or moral obligation inherent in the individual, group, or company to mention how the funds, tools, or authority given to third parties, whether the Fund's already worn and used? And is used for what? The company should be able to mention how they put the origin of the funds and what he has accomplished as a liability on the person concerned as wells as the beneficiaries. All interested parties are entitled to know how the Fund and the authority is used.


Consistency

Financial policy and system of the Organization should be consistent over time. This does not mean that the financial system should not be adjusted in the event of a change in the organization. Inconsistent approach toward financial management is a sign that there is manipulation in financial management.


Viability

To finance the Organization's expenditure on waking, at the level of the operational strategy to is obliged correspondingly or adjusted with the funds received. Viability (viability) is a measure of the level of security and the financial sustainability of the organization. The Manager of the Organization must prepare a financial plan that shows how organizations can implement his strategy and meet financial needs.


Transparency

The company should be opened about its work, providing information pertaining to the plan and its activities to the peoples concerned. Including preparing financial reports are accurate, complete, and timely, as well as easily accessible by the management of the interested parties and beneficiaries. If the company is not transparent, it indicates there is something to hide.


Accounting Standards

Accounting and financial systems used company must comply with the principles and the applicable accounting standards. This means every accountant in the whole world can agree and understand the system being used.


Integrity

In carrying out its operational activities, the individual involved is obligated to have integrity. In addition, reports and financial records should also be maintained through the integrity and accuracy of completeness of the financial record-keeping.


Stewardship

Companies must be able to manage and use funds that has been obtained and ensure that these funds are used to achieve a goal that has been set by the company.


That's the seventh financial management principles you need to know. Perform financial management certainly is not an easy thing.

However, you do not need to worry because in the age of technology likes this now, You can exploit software accountancy.


The journal is an online accounting software that can help you conduct a financial management company with good. Journals can help make financial reports with fast, instant, and presents the data in real time.

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