Lawrence J. Gitman has defined finance as ‘an art and science of managing money’. This is the department that is entrusted with managing and enforcing departmental budgets, which is such an essential part of financial management systems, and essentially handles and accounts for every penny that flows in and out of the business coffers. This means choosing an adequate financial management system that will allow change and growth in your company, in a simple and cost-effective manner.
Nowadays, with the ubiquitousness of computers at every level of business and commerce, there is no doubt that any company that takes advantage of a complete financial management system for their operation will also be using sophisticated money management software as well. Even though the people in the organization bring the expertise and knowledge to the task of business financial management, the software chosen to help them do their jobs is critically important and much be chosen only after careful research and comparisons, with regard to the options available. Lastly, any kind of new business processing system may require IT support and maintenance.
Indeed, your budget would determine which business processing system you choose but other factors such as support, security, and solutions can greatly affect the results of your investment. Perhaps your system requires updating for new functionality like supply chain management or procurement management. The level of maintenance and support you get will have an effect on the ease and success of your newly purchased financial system. Program Financial Management includes identifying sources of funding, integrating individual project budgets, developing a overall budget and controlling costs throughout the lifecycle. Program finance management sets the structure for managing finances efficiently.
Key elements of finance management includes aggregating the individual project budgets as well as budget for the effort involved in managing the initiative as a program. Program managers are generally involved in financial management of the initiative starting from the initial pre-approval stages. The first process under financial management is Establish Program Financial Framework. Connecting the phase, process group and the process, it would be the Program Initiation Phase, Initiating process group and the process falls under Financial management knowledge area.
A Program’s financial framework varies according to the environmental factors in which the program operates. Common environmental factors that affect the financial framework of a program include cost, size, geography, industry and duration. If you are new to business, don’t worry because there are literally hundreds of financial management software programs available today.