Government needs Financial Management

Government needs Financial Management

Financial management, and our government The axing of the South African Finance Minister has been widely met with disbelief. At no time, in recent history, has the country been more in need of competent financial management and financial discipline than now. Speculation is rife regarding the reasons for the replacement of a minister, who has served with two previous finance ministers, with someone who, by all accounts, is comparatively inexperienced and incompetent. Whatever the reasons were for this ill-judged decision, the consequences will undoubtedly be dire for the economy, and for the country and its people. white space It can wait Similarly, in business, there are many reasons why business owners neglect the issue of having competent financial management. Some reasons revolve around avoidance of compliance costs, while others pertain to the perceived cost of a financial manager. The cost of financial management is often seen as a grudge expense. This is now white space Financial Management, is it that important? Like our real-life example above, if avoidance is the issue, it will catch up with us at some stage, and the consequences of avoidance will prove far more expensive than the cost of compliance itself. If the cost of having a full-time financial manager is deemed prohibitive, or excessive, there is the option of outsourced financial management, which gives the business-owner the option of retaining the expertise of a financial manager to the extent that it is required. Financial Management- Outsource it At Leaders Business Solutions we offer Outsourced Financial Management solutions, in addition, or along-side, back end office support services to alleviate your Financial Management and other management issues. this is white...

Accounting Software – The hard side of software

But I have a helpdesk These days, accounting software packages are so user-friendly that a business-owner is often mistakenly led to believe that he or she can take care of the accounting function himself.  Well written and supported software packages have flooded the market and with tutorials, helpdesks, as well as online and personal support as an after-sale service. It is understandable that one might feel that they can effectively manage their own company finances.  These packages have all the correct management and reporting functions which lulls you into a sense of security with regards to Financial Management. Did you know This can be a mistake that can lead to misstatement of profit or loss due to incorrect accounting treatment, a distorted balance sheet, and cash flow management problems.  Being a business owner you are sure to understand the effectiveness of well-prepared financial statements, preparation and execution of business plans, cash flow forecasts and daily governance, in order to increase profits and assets.  However to achieve all of the afore-mentioned, a Financial Manager, who is proficient in all the requirements, is critical. It’s not just numbers You, as the business owner, will more than likely be unaware that there are many regulations and periodic statutory and taxation obligations with which you are required to comply. One error or omission can lead to non-compliance, a situation which in turn can lead to interest on unpaid amounts and harsh penalties, not to mention that the withholding of that all-important Letter of Good Standing, which many outside stakeholders and, particularly clients, require. It is imperative that you involve a suitably qualified Financial...