Financial Management Business Organization

Question: Describe about the Financial Management for Business Organization. Answer: Introduction This study deals with discussion on financial and non-financial strengths and weakness for any business organization. These attributes are utilized by business firm in accordance with their past strategies for solving their problems as far as possible. Financial and non-financial information are present in every organization that should be analyzed by financial analyst so that current problems can be solved in the most appropriate way (Weil et al., 2013). The present study clearly explains attributes on financial strengths and weakness, and non-financial strength and weakness prevailing in any business organization. Summary of financial and non-financial strengths and weakness of the firm with company strategies for solving problems According to Pratt (2013), determining the financial strengths by looking at the mission statement of business organization as well as assessing the current financial position This will help in determine whether particular business organization is strong enough for standing for making further improvements in their financial activities. Financial strength further means anything that can positively reinforce for viewing at the current financial situation for goal achievement for financial mission statement in the upcoming financial year. Business organization should examine the areas for close attention regarding income, debt as well as positive monthly cash flow activities (Weil et al., 2013). If any particular organization has better current ratio, then it proves business firm can easily meet the short-term obligations as and when required. Henderson et al., (2015) opined that business organization required to identify weakness that making them unable to reach future financial goals. It can be a lack of income or earning potential attributes in the near future. Identifying of weakness and working on those areas will help business organization attain organizational goals and objectives as far as possible (Weil et al., 2013). As far as non-financial strengths are concerned, it deals with non-financial terms like rewards, recognition for the employees. This recognition is one of the motivating factors that make business organization achieve huge profits with their human resources. Human Resource in form of employees is one of the real assets for the organization (Deegan, 2013). Therefore, business enterprise should make proper use of these unique resources by addressing their grievances on timely manner. Employees should be given enough recognition if they perform extraordinary good that leads to generation of revenue for companies. Non-financial weakness can be termed as misutilization of power by the employees working for any business organization. Manager should never be a part of bias activities or favoritism in rewarding any kind of employee (Weil et al., 2013). It may happen sometime that deserving employees are not rewarded and leads to negative impact on other employees mind as well. Conclusion At the end of the study, it is concluded that financial and non-financial information help business organization in achieving their goals and objective. Annual reports render detailed analysis on any business financial and nom-financial information for future analysis purpose. Information regarding financial resources helps in understanding the profitability, liquidity as well as efficiency position of business organization. Reference List Deegan, C. (2013). Financial accounting theory. McGraw-Hill Education Australia. Henderson, S., Peirson, G., Herbohn, K., Howieson, B. (2015). Issues in financial accounting. Pearson Higher Education AU. Pratt, J. (2013). Financial accounting in an economic context. Wiley Global Education. Weil, R. L., Schipper, K., Francis, J. (2013). Financial accounting: an introduction to concepts, methods and uses. Cengage Learning.