Simple tips on writing an essay about financial management
It is always hard to manage your finances in real life. Not to mention writing papers on financial management. Even though this topic is complicated, it is essential to know how to write an essay about financial management. Knowing what to include in the paper will not only help you get a high grade. It will also allow you to manage your finances in the long run and boost your business enormously. This article reveals simple tips on writing a financial management paper.
Financial Management: Definition
Financial management is an indispensable part of general management. It covers multiple processes, such as fundraising, fund use, and fund monitoring. Financial management concentrates on working with funds, assessing its practical utilization, and raising additional wherewithal to increase the company’s profits and boost its recognition.
Besides, financial management analyzes the risks the organization should or should not take to increase its profits. It requires analytical and critical approaches to manipulate, use, and control funds. Finally, it plans potential investments, controls the ongoing performance, and analyzes future development.
Tips on Writing a Financial Management Essay
Learn the Structure
Every paper is unique, and it has to have a specific structure. As a rule, essays follow the introduction, body part, and conclusion. Every section carries a certain aim that creates a clear picture as a whole paper. Before writing the paper, check the instructions. You may well be asked to include particular articles in your essay or use a different format. This qualified and cheap essay writing agency confirms: many students get stuck with writing papers and turn to the company because they don’t follow the instructions and fear failing the assignment.
Expand Your Knowledge Beforehand
Whatever you study, be it Finances, Business, or Accounting, make sure to improve your knowledge outside academia. Using books and articles that a curriculum provides you with is good. But it will be way better if you look for additional literature. This way, you will increase your expertise area and be able to write a paper considerably quicker.
Moreover, you can use such sources when writing your essays. Not only will you finish your work faster, but your teacher will see that you are dedicated and ambitious. Try following Google Scholar, ResearchGate, Financial Times, and other verified financial journals and web pages.
Determine The Essays Objectives
The objectives of financial management are profit maximization and wealth maximization. When writing a paper, make sure to include at least one aspect of maximization. They help evaluate the corporation’s goals.
It comes as no surprise that the company’s primary aim is to make profits. The finance board must take critical steps to maximize the organization’s profits. It can be done through the mentioned two concepts.
When it comes to profit maximization, it usually struggles with these limitations that you may want to add to your paper:
- It is a vague concept: the term doesn’t explain whether it is the profit before or after-tax, in absolute figures or as a return or investment, short-run or long-run profit.
- It eschews the timing of benefits: no difference between profits that will occur in the future and now.
- It avoids the quality of benefits: focusing on profits treats every advantage equally, which is a common and severe mistake.
Wealth maximization analyzes a project based on cash flows produced over its efficient operations. It is a better and more rational strategy to manage finances, predict profits, and put the right priorities that will allow the company to multiply its profits.
Include a Scope of Financial Management
The scope of financial management is the paper’s other vital component. There are two approaches that you should write about.
Traditional Approach
It was a prevalent attitude during the last decade of the 20s century. It concentrated on funds procurement and similar operations. It wasn’t very effective, mainly because:
- It wasted funds.
- It focused on long-term results and ignored short-term financial demands.
- The non-corporate sector was entirely ignored.
Modern Approach
Contrary to traditional, a modern approach was brought into being. In a nutshell, it emphasizes the importance of finance utilization, which ultimately leads to increased profits.
The three focal interest areas are:
- The company’s size.
- The availability of finances.
- The distribution of sources.
Remember To Add Functions
Finally, don’t forget to talk about decisions that an organization makes to manage its finances. The three main decisions are:
- Dividend decision: It focuses on retaining a part of profits and distributing another part in dividends.
- Investment decision: It invests funds for efficient operation. Two methods are possible: capital budgeting and working capital management.
- Financing decision: It works with different finance sources (short and long-term). It also deals with debt and equity.
These are the three most important elements you should include in your essay. Although they might be hard to swallow, it is necessary to add them to fully reveal the topic. Incorporating these components will make your paper comprehensive, informative, and accurate.
