What is Finance?
From business finance, personal finance and public finance, finance includes both saving money and often lending money, as well as the analysis of which markets are making money. The field of finance deals with the concepts of time, money and risk and how they are interrelated. It also deals with how money is spent and budgeted.
The types of training that is associated with finance varies from the financial
services industry as banks, brokers, and others. The analysis part includes all
forms of economic analysis of a company. This could be directed against any
senior manager who wants to analyse their own company or external company.
Accounting and book keeping
Accounting is a way for companies to document how they handle the
company's
resources, and therefore, most companies employ a highly skilled book
keeper. The
information derived from the accounts makes it possible to compare the
financial results with competitors, and facilitates the interpretation
and comparability over time. This type of information is generally
available to anyone with an interest in the company - that is,
owners, employees, suppliers, customers, financiers and investors. The
presentation of the accounts therefore, reduces uncertainty among
actors with an interest
in the company. It is the responsibility of the management and board
that the accounts statement is
correct. Accounts can be audited to see if they are in fact true, and to
build trust in
that statement is correct.
Financial Analysis
Financial analysis refers to an assessment of the viability, stability and profitability of a business, sub-business or project. Economic
indicators describe an organisation, a company or an association and its
activities in society. Economic indicators can also be a valuable indicator on the
efficiency of a business, ie how satisfied
consumers are, they can allocate utilization of machines, and
they can show that the production is time-efficient or not. In the
financial-economic indicators are important tools. Examples of various
financial ratios are the operating margin, P / E ratio, equity ratio, debt to
turnover ratio, return on equity, return on assets, return on capital employed,
capital turnover and the turnover of staff.
Financial Management
A financial manager is responsible for the daily operation of a finance department -
the details of which vary depending on the company. Finance managers duties could include the
financial statements, accounting, payroll, reconciliations, supplier and
customer invoices, calculation, planning and monitoring. It is very important for a companies efficiency that financial managers have been adequately trained, and
have a strong interest and background in numbers. It is also important that the management
knows about the basic business law contracts, claims and sales laws. But as a
financial manager often works alone as is usually the personal qualities
that are important in a new manager that will be recruited - training will enable assistants to be structured and
thorough, and able to handle the pace that is sometimes high.
Investment Banking
Investment banking covers many areas within financial department of companies, and worldwide banks. The divisions of investment banking are often known as merchant banking, corporate finance, or capital markets. Companies use the investment banking division to help them raise
capital through issuing shares or bonds as well as deal with mergers and aquistitions. In the capital marketing division investment bankers trade bonds, stocks and other financial products (so-called securities). Investment bankers
provide whatever financial services a client may require, and so frequent training programmes ensure that the
people employed develop particular qualities of flexibility,
innovativeness and client handling skills.
Credit Control
In general, the mismanagement of cash flows is the single biggest reason that small
businesses go don't survive. Therefore, a good credit control system is an
essential part of any business' accounting procedures and understanding how to maintain a
consistent cash flow, avoid bad debt and minimise late payments are all essential skills for survival. Adequate training in credit control is undoubtedly important for any business, and usually covers areas such as cash flow management, outsourced credit control, sales ledger management, credit control software, debt recovery and direct debit management.
