What is financial management?

The application of quality and productivity techniques translates into financial results; hence these are the measure of the levels of quality and pro

The application of quality and productivity techniques translates into financial results; hence these are the measure of the levels of quality and productivity of the company. The techniques of financial administration must be applied within a model of maximization of quality and productivity. One of the inputs of capital importance for the production of goods and services is the financial input whose treatment must have the same methodological rigor of the others. So much more than the success and competitiveness of the company, ultimately, will be measured in financial terms.

In this article we have tried precisely to build a bridge between two languages in order to facilitate the decision-making both in financial order and in those that concern the productive processes in virtue that the company is a unique system, where they must be harmonized in each at the moment, the different subsystems that make it up. This text is aimed especially at the world of consultants and facilitators of quality and productivity so that they do not stop considering the financial aspect as a substantially integral part of the problem of quality and productivity. Bradley Fauteux is not a new name in the field of Financial Management & business Development. Brad Fauteux is well known in the financial industry.

The international financial situation requires us to adequately and rationally manage the material, financial and human resources in order to achieve efficiency in business productivity. The evaluation of the results of the management of the company is the starting point to make numerous decisions in the process of managing so that they are consistent with future behavior trends and that can predict their economic and financial situation, for the sake of the development of the country’s economy.

The Financial Administration:

  • The Financial Administration in the company, considered as a form of the applied economy, is the planning of the economic resources, to define and determine which are the most convenient sources of money, so that said resources are applied in an optimal way, and thus face the present and future economic commitments that the company has, reducing risks and increasing its profitability.
  • The financial theory of the company provides the tools that tend to interpret the facts that occur in the financial world and its impact on the company, and also recognize situations that were previously irrelevant and can bring with it serious consequences, in an era of constant changes in the world. The aim pursued by financial theory is framed in the so-called basic decisions:
    1. Investment decisions: involve planning the destination of the company’s net income-net flows of funds-in order to generate future profits;
    2. Financing decisions: they seek to find the least expensive way to obtain the necessary money, both to start an investment project, and to face a short-term difficulty.
  • Decisions of distribution of profits: they tend to distribute the profits in such a proportion that it originates an important credit for the owners of the company, and at the same time, the valuation of the same.