It is not surprising that many people are seeking to learn the principles of financial management. Most of these individuals are well-educated and aware of its importance. Many business professionals aim to understand financial management principles to gain a comprehensive view of the labor market and to enhance their knowledge and expertise in business management and development. By learning these principles, businesspeople and anyone interested in entering the corporate world can better understand how to advance the growth of companies and institutions, as well as fully comprehend accounting methods and financial operations. The British Academy for Training and Development offers a specialized course to help individuals master these essential skills for success in the corporate world.

What are the principles of financial management?

Learning the principles of financial management reduces the gap between the board of directors and accountants and between marketing managers and financial management officials. Learning these principles will lead to an atmosphere of understanding and cooperation to reach the best financial results of a company.

Let us begin by defining the principles of financial management: these are the basic principles under which an understanding of the general budget is understood and the difference between it and the profit and loss account of a company or institution.

Financial Management Departments:

For a greater understanding of the principles of financial management, we should know that they consist of several sections.

Department of secretarial: A section specialized in receipt of orders received in exchange and delivery to specialists and the receipt of transactions and papers required to keep, register, and coordinate.

Audit Department: A specialized department in the field of auditing all documents and financial transactions received for financial management and all financial transactions related to the work of the company.

Linkage Section: This Section shall record the entire budget appropriation and distribute it to the appropriations, take certain procedures, exchange, withdrawal, deposit and benefit transactions and submit the final account data at the end of the year.

General Treasury Department: This section receives the account of the Fund and deposits it in the account. It also pays salaries and entitlements to individuals, verifies the validity of the data and reviews all movement of funds in the company.

Accounting Department: A department whose employees prepare accounting entries, reconciliations and various accounts, and conduct a reconciliation.

Guarantees Department: It is a specialized department in receipt of the guarantees that are referred to the financial department, making files for these guarantees, registering them, and supervising the banks for their renewal and follow-up.

This was a brief overview of the key principles of financial management and its divisions and the function of each department. Understanding these principles drives the development of companies and institutions, and understanding the principles of financial management will help to make a greater sense of sound financial management.