Money has played an important role in our life. It is not the prominent but nothing can be done without it. Therefore, we need to take good care of it. Cash flow is the ‘blood’ of an enterprise, if a company facing cash flow problem; it has to make borrowing from bank. To increase the volume of business by providing long credit term to customer is not a healthy way of doing business. We must have good business mindset in doing business, by selecting good customer base; we can ensure collection and profitability. This will help to prevent the company fall into indebt ness with bankers, suppliers and lead to bad debts or bankruptcy situation.
The financial planning and management of a company is complicated, it consist of investment, tax planning, borrowings, credit management etc.
It is mostly important that the management and staffs are committed to companies’ financial policy and together work towards its achievement and implementation.
Lack of co-operation from any part, the company would require greater, longer time, effort and funds for recovery.
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Cash flow is also like our heart, it beats twenty four hours a day. If it beats slowly, there will be lack of blood circulating to our body and this would affect the effectiveness of our work. In the worst situation, it can stop beating and there gone our life.
The cause of failure in finance planning
Financial planning is an important issue in our life, it certainly affected our lifestyle. Unfortunately, most people do not realize the important of financial planning and results to many difficulties in life due to improper financial management.
The following are few causes to unsuccessful of financial planning:
1) Wrong investment strategy
2) Ignorance the important of timing in financial management
3) Lack of consideration in inflation factor
4) Decision made in hurry, without proper planning
5) Deferring in decision making
6) Wrong concept
Lastly, the most important point in managing the company financial position is to take good care on the company’s wealth and the cash flow turnover position, with this then only the company can sustain growth in business as well as staffs development.
Lets together we growth our wealth in a positive, healthy manner! |
