In the context of the constantly fluctuating global economy, financial management has become a key factor determining the success or failure of a business. Currently, many businesses in Vietnam still face difficulties in effective financial management. According to the report, Vietnam’s public debt ratio at the end of 2021 accounted for about 43.1% of GDP, while government debt was about 39.1% of GDP, showing the need to improve financial management to ensure sustainable development.
One of the common mistakes is the lack of detailed financial planning
And not closely monitoring cash flow, leading to a shortage of capital, not being able to pay debts and operating expenses. In addition, not assessing the country wise email marketing list risks before each expense also makes the business susceptible to financial crisis when facing market fluctuations.
To avoid these mistakes, businesses need to grasp the principles of financial management, mistakes and how to handle them properly. Only then can businesses ensure stability and development.
What is financial management?
Simply put, financial management is the planning of a business and ensuring that every department operates according to that plan. With effective financial minister of agriculture didier guillaume management, the Chief Financial Officer (CFO) or Vice President of Finance can provide the data needed to develop a long-term vision, make investment decisions, and figure out how to finance those investments. They can also look at the liquidity, profitability, and cash flow of the business.
The types of financial management that exist today include:
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Capital budget
This is the process of planning how a company will achieve its short-term and long-term financial goals. Specifically, it helps a company determine where to usa b2b list invest its capital to grow. For example, a company may decide to invest in new machinery, expand its factory, or research new products. The goal is to maximize the return on that investment, ensuring that every expenditure is beneficial to the growth of the company.