Basic Teaching Methodology (2)

Finance ManagementThe IABFM continues to expand its membership base and the number of training programs it runs annually. Many people find second jobs to make some extra money, and young people do extra chores for family and neighbors and get paid for them, like washing cars, mowing lawns, and painting fences. You don’t need to be a financial expert, actually it’s better if you keep it simple, it will sound even more like an everyday essential knowledge. Sadly, it was my experience over many years of public accounting practice that few people discuss money management with their kids.

The budgetary process is the sole responsibility of senior management staff and finance staff and hence they need to have all the accurate and updated information for efficient budgeting procedure. Budgets are developed for each financial year and the managers / staff involved will have to develop budgets for their own area of responsibility and then hand it over to the finance department. These are then reviewed by the higher management and then agreed in a committee or something similar depending on the organisation.Finance Management

In order to manage the budgets, you will have to constantly monitor, control and record the income and expenditure so that you keep track of every financial movement and its outcome. Tracking or monitoring the way in which financial resources are utilised or effectively used is very important for every department and the organisation; it is a continuous process to ensure that objectives are being met as specified on the budget. Look at the balance remaining for the rest of the period in current financial year and run a forecast of what the situation will be at this rate at the end of the financial year.

It is best to monitor the income and expenses at the budget holder level and also at higher management level through regular meetings. There has to be effective cash flow management as it is very important for the services and products that the business delivers. Managing a budget is not about just keeping the finance numbers right, but it is also about managing the people involved, for example the employees or team members. One can get into trouble if there are failures in budget management and also get rewarded if they were successful in budget management. It is the fund administrators job to accurately reflect these trades within the correct timeframe.

Generally the name of the fund will give a good indication of the assets that are invested in them, but a detailed description is provided in the fund prospectus. These include assisting with the annual audits of the funds, dealing with Trustee queries, dealing with client queries, providing management information and other ad hoc tasks. Many people fall into the job of a fund accountant without any particular knowledge of what is involved. Through the site, I was able to share and recommend to my finance friends the film Margin Call.

Finance Management