Financial Floating Manager

Posts Tagged ‘Management’

He has been termed as a legend; many know him as the king of pop and the supreme entertainer of all times, Michael Jackson transcended all races and touched the lives of many people. Whether his influence on his fans was positive or negative, I leave that to you to make your own verdict.

The one thing that Michael did is make money from his music. He paid close attention to his potential and found ways to perfect his music and dance moves while keeping his wardrobe up to date with the relevant costumes. He made good use of his talents to generate immense wealth but the sad part is that he did not manage this wealth properly.

Financial management requires one to get help from people who are qualified in handling finances. Many of us don’t check our expenditure, no matter how much you make ensure you spend less than what you are earning.

Some of the sound investment options would be in education and health. Do not forget to invest in your family and friends, if anything was to happen to you, these are the same people who would offer you support and lift you up again. Choose your friends wisely; associate yourself with people who will help you manage your finances right.

I have noted others wait for a financial crisis before re-organizing themselves instead of taking charge of their finances by investing wisely, saving regularly and budgeting before spending. Avoid incurring unnecessary debts for this will lead to stress and eventually financial mismanagement. Ultimately realize that your financial freedom is determined by the choices you make today.

A well known university SMU is most famous for health and medical. Now, it is famous for distance education also. In the recent days, it has been known for distance MBA very promptly. The university provides own written books for its MBA education. There is an introduction of financial management book.

There are 15 chapters in the book. The book deals the management problems and financial resources in business firms. Financial management is known as basic managerial actions relating to the three major decision areas such as investment, financing and dividends and working capital management.

The book comprises 15 units:

1. Financial Management – the chapter explains the meaning, scope and examines the goal of corporate financial management.

2. Financial Planning – the chapter explains the meaning and need of financial planning.

3. Time Value of Money – the chapter introduces about time value of money and discounting of cashflows.

4. Valuation of Bonds and Shares – in this chapter writer explains about the valuations of bound’s principles and equity shares.

5. Cost of Capital – this unit describes the concept of cost of capital.

6. Leverage – it is one of the most important chapters in the financial management which deals financial and combined leverage.

7. Capital Structure – in this chapter many theories of capital structure has been introduced.

8. Capital Budgeting – the chapter explains the meaning, significance of capital budgeting decisions and about various investments of appraisal techniques.

9. Risk Analysis in Capital Budgeting – there has been introduced risk in capital budgeting decisions.

10. Capital Rationing – it examines the steps which involved in capital rationing process.

11. Working Capital Management – there are various concepts of working capital and factors that influence the working capital requirements in a firm.

12. Cash Management – this is the most important component of working capital.

13. Inventory Management – the unit describes about various forms of inventory management.

14. Receivables Management – cost of maintaining receivables, formulation of credit policy and determination of an optimal credit period has been discussed in the chapter.

15. Dividend Decision – basically, the chapter deals about payment of shareholders.

These are the brief description of financial management book of SMU MBA. A student can find more about these chapters in the book of Financial Management

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If you are just going into freelancing then perhaps one of your biggest questions (unless you are already a financial management expert) is how you should handle the financial aspects of your freelance business.

Perhaps one of the first things you should consider is getting someone to help you with the bookkeeping and accounting aspects of your business. You may want to get someone you know to help you with this or if you do not know anyone who has the necessary expertise then you can use the same freelance jobs boards you use to get a freelance bookkeeper or accountant.

Start by collecting all your invoices for any purchases you make. As you go into freelancing you will discover that there are many items that you would not have normally worried about in the past but that you can now claim from tax as business-related expenses so keep all invoices you receive.

You should also keep a book where you write down everything you buy, all money expended and all money received. Speak to your bookkeeper about what books you should be keeping and how you should go about filling them in but before you speak to them start now by just writing down every cent that leaves or comes into your hands.

The next aspect is to budget your expenses as far as possible. Although freelancers often find it hard to determine exactly how much money they are going to be receiving on a monthly basis try to budget each amount that comes in so that you know where your money is going.

Another thing you will probably want to do is to set yourself financial goals. How much do you want to make this month? Next month? Six months time? In a year? Write down these goals and then see how you can go about improving your income to meet these financial goals. Also work out how much you want to save and how much you are going to be spending.

If you have not already registered as an independent agent for tax purposes you will also want to do this as soon as possible. You should speak to your accountant about this and ask him what is required and how you should go about doing this if you do not already know. It is important that this is done within the first three months of starting your freelancing business.

In conclusion then, to manage your finances effectively as a freelancer you should begin by finding yourself a reliable bookkeeper or accountant, collect all your invoices and write down all money that comes into or goes out of your hands. Register for tax as early as possible (within the first three months) and set yourself financial goals that you would like to reach to help you manage your money more effectively.