Questions about Financial Management (Research Paper Sample)

Financial management
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Discuss the understanding of what financial management is and why is it important for not-for-profit organizations?
Financial management entails efficient and effective management of financial resources by planning, organizing, and controlling of financial activities. Financial managers play a critical role in ensuring that enterprise resources are used accordingly. Financial management is critical in the overall performance of an organization. Decisions such as capital budgeting and sourcing of finances are performed by financial managers in the process of financial management (Eugine and Philip 2015). Plans have to be made on how to use financial resources and proper form of control set up to ensure that the process is effective in the long run.
Just like any other organization, NGO's require financial management for effective running of their activities. Financial management in an NGO is paramount as it provides for budgeting and accounting of core costs, monitoring and controlling of budgets, giving relevant financial information to donors and management of audits.
What are the advantages of being a not-for-profit organization?
A not-for-profit organization essentially provides goods and services that are not intended to generate profits.
Advantages
1 NGO's have the capability of taking risky projects as well as freely experiment with new innovations.
2 The organizations are flexible in adapting to local needs and situations and hence can form integrated and sectorial projects.
3 NGO's offer micro-assistance to poor people since they are able to identify their unique needs as a result of close relationship they have with the people.
4 The organizations enjoy close communication with local people and at all levels of the government.
5 Since the NGO's have fewer restrictions, they are able to employ highly competent and motivated staff.
What is your experience/knowledge of financial management?
Having worked at a law firm as a facility manager, I was able to equip myself with financial management skills. As a facility manager, my job description involved helping in bookkeeping and management of the supplies budget. The experience was crucial in carrying out financial management duties as it gave proper knowledge in budgeting. Budgeting and bookkeeping are some of the roles of a finacial manager. Proper budgeting ensures that an organization operates within its resources it provides estimates of what is needed for carrying out operations in an organization (Deepika 2014). Bookkeeping gives information required for making decisions on what and when to order and if there are enough resources for use in the organization.
Indicate the areas of financial management that interests you.
Financial control is one area of financial management that highly interests me. Financial control is critical in every organization. Effective financial control ensures that an organization is able to achieve its short-term and long-term goals. Financial control involves making decisions on the projects and portfolios t