Financial control may be construed as the analysis of a company’s actual results, approached from different perspectives at different times, compared to its short, medium and long-term objectives and business plans. These analyses require control and adjustment processes to ensure that business plans are being followed and that they can be amended in the event of anomalies, irregularities or unforeseen changes.
Financial performance is a subjective measure of how well a firm can use assets from its primary mode of business and generate revenues. The term is also used as a general measure of a firm’s overall financial health over a given period. Analysts and investors use financial performance to compare similar firms across the same industry…
The success or failure of an organisation is determined more by the Financial Leadership within an organization than its strict adherence to accounting rules and regulations. Technical competency is a requirement, however Financial Leadership, in the ethical use of financial information that adds value, is what moves the organisation to be successful.
Foreign Exchange, or forex, is the conversion of one country’s currency into another. In a free economy, a country’s currency is valued according to the laws of supply and demand. In other words, a currency’s value can be pegged to another country’s currency, such as the UK pound, or even to a basket of currencies….
A prediction concerning future business conditions that are likely to affect a company or organisation. Financial forecasting identifies trends in external and internal historical data, and projects those trends in order to provide decision-makers with information about what the financial status of the company is likely to be at some point in the future.
Financial modeling is the process by which a firm constructs a financial representation of some, or all, aspects of the firm or given security. The model is usually characterised by performing calculations and makes recommendations based on that information.
A strategic action plan in which a goal is created to improve overall finance performance within an organisation. It includes a variety of tasks, from implementing new accounting software to shortening a budget cycle to reducing overhead costs.
Financial resource provided in order to finance e.g. program, project or a new product launch usually by an organization or company
A futures contract allows a buyer or seller to purchase or sell an asset with delivery and payment occurring in the future. The buyer is ‘long’ because he expects the value will increase and the seller ‘short’ because he expects the value to decrease.