Financial Management
Fortuner is one of the Best Accounting Software in Dubai UAE and Financial Management is one of the important and integral parts of overall business management. It is directly related with various functional departments like personnel, marketing and production. Financial management covers wide area with multidimensional approaches. All kinds of business activities depend on the finance and hence it is called as lifeblood of business organization. Finance also is referred as the provision of money at the time when it is needed. Finance function is the procurement of funds and their effective utilization in business concerns.
Types of Finance
Generally you can see Two Types of Finance in the Market
- Private Finance
- Public Finance
Private finance includes the individual, firms, business or corporate financial activities to meet the requirements. Public Finance which concerns with revenue and disbursement of government such as Central Government, State Government and Semi-Government Financial matters
In the modern world, all the activities are concerned with the economic activities and very particular to earning profit through any venture or activities.
Importance of Financial Management
All types of organization or business need to maintain suitable and adequate amount of finance for the smooth running of their entity. Managing Finance is the process of planning, organizing and controlling of finance in an organization. Financial Management helps organizations in financial planning and acquisition of funds.
Financial Planning in Fortuner Best Accounting Software
As Best Accounting Software in Dubai UAE, Fortuner Financial Management makes it possible to plan the finances of a business concern and helps to identify its financial needs through various statements like Profit and Loss A/c, Cash Flow Statement, Balance sheet etc. .
Financial planning can be summed up as a strategy developed to reach long-term financial goals by examining organization’s current financial situation. It is the process of establishing financial guidelines for the acquisition, administration, and management of an organization’s financial resources.
Financial planning is a vital component of business concern that supports the promotion of an enterprise.
Acquisition of Funds
When acquiring funds, one must take into account both the sources that are available and the duration for which the money is required. Determining the types of funds to be used and the mix that is most appropriate for the circumstance is the first step in these considerations. The process of financial management includes securing the necessary capital for the company. Obtaining necessary funds is a key component of financial management, which involves finding the best sources of funding at the lowest possible cost.
Proper Use of Funds in Fortuner Best Accounting Software
The efficient allocation and use of Fund is essential to achieving operational effectiveness and efficiency. It contributes to lowering the cost of capital and raising the value of the company. The most important thing is to use fund in ways that could increase sustainability and profitability. The operational effectiveness of the business concern is enhanced by the wise use and distribution of financial resources. The cost of capital can be decreased and the firm’s value can rise when the Finance Department manages the Fund effectively.
Financial Decision
A business enterprise cannot endure over the long term without achieving minimum financial performance levels. So decision-making assists in utilizing the resources available to achieve the organization’s goals.
Everything a business owner needs to know about the kinds of financial decisions made by their organization. Financial decision-making is primarily concerned with financing, investments, dividends, and working capital management.
Best Accounting Software in Dubai UAE helps organisation to take better Financial Decisions. Making wise Financial Decisions in a business concern is facilitated by financial management. A financial decision will have an impact on the concern’s entire business operation. The reason for this is that there is a direct connection with various departmental tasks like marketing, production workers, etc.
Improve Profitability
Businesses across a range of industrial sectors are going through fundamental changes as a result of globalization, the development of new technologies, and growing digitalization. These changes not only offer a surplus of chances for the organization to reach new heights, but they also pose a number of difficulties for the business model.
The effectiveness and wise use of funds by the business concern is the only factor that influences whether or not the concern is profitable. Strong financial control tools like budgetary control, ratio analysis, and cost volume profit analysis are used by financial management to help the organization’s profitability position. Four important areas can contribute to profitabilities are reduction of cost, turnover increase, productivity enhancement, and improvement.
Increase the Value of the Firm
The main goal of financial management is to increase the firm’s wealth by raising the market value its share. If after-tax earnings increase, the firm’s wealth also increases. When it comes to boosting investor and business concern wealth, financial management is crucial. In order to increase the earnings of the equity shareholders, a company raises debt at a low cost. The ultimate goal of any business enterprise is to maximize profit, and greater profitability drives up investor and national wealth.
Promoting Savings
Financial savings can refer to either the practice of setting aside a share of firms’ current income for future use or the flow of resources accumulated in this way over a specific time period. Financial Savings are possible only when a company achieves higher profitability and maximization of its wealth. Savings among individuals and businesses are encouraged and mobilized by effective financial management. In modern times, financial management is also frequently referred to as corporate finance or business finance. Without the significance of financial management, corporate or business concerns cannot function.
As Best Accounting Software in Dubai UAE, Fortuner ERP has full-fledged Finance Module to handle all Financial Management activities. You can convert all of the paper work into online reports and sheets that are accessible to anyone with access with the aid of Fortuner finance and accounting modules. The entire process is made transparent and visible.
Benefits of Fortuner Finance Module
- Automatic Integration with Operation Modules like Purchase, Inventory, Sales, Production etc.
- Centralized Chart of Accounts
- Year closing and custom type period closing.
- extremely effective Accounts Payable Division
- Outstanding Account Receivable Module
- Separate Bank Management Module
- Bank Relationship managers history
- Separate Cash Management
- More than 70 Default Reports