The financial management introductory course started this semester introduces me to a set of skills I was familiar with but extremely rusty with or that I was totally lacking. Something like basic accounting principles were refreshed in my memory, and skills like financial forecasting and interpretation of the essential financial documents were a few of the things learned so far. In the business world we here a lot about private companies, public limited liability companies etc which all offer different investment opportunities to individuals, you might be familiar with the stock market a platform that allows anyone with the money gain a stake in a listed company for a price. Before professional stock brokers and financial advisers give you advice they take a good look at certain items in books such as the balance sheet, the profit and loss account and a few others, many of the items in the financial reports can be combined to give you financial ratios which tell you at a glance how the company is performing. These types of information are very important for decision making by financial institutions, private lenders, managers, investors and other departments within the organisation. It is necessary to possess at least a basic knowledge of financial ratios if you are interested in investing and wealth building or a professional level of knowledge for financial advising.
Financial management or whatever name it may be called, can be used for more than just investment purposes, it can be used to determine areas in a company’s activities that need to be adjusted or fine tuned to increase profitability or prevent losses. It is a very crucial skill to master for business professionals such as managers, stock brokers and a few others.
The next time you are considering making a huge financial choice, or just interested in increasing and varying your knowledge base, Financial management is the kind of knowledge you can never go wrong with.