Financial Management - Keys to Economic Success

1
Financial management
Keys to economic success
www.nriwealth.com
2
Introduction to financial management

• Definition The strategic planning, organizing,
  directing, and controlling of financial
  activities.
• Goals Ensure adequate funds, maximize profits,
  minimize risks, and achieve long-term financial
  sustainability.
• Importance Supports business growth, enhances
  decision-making, improves resource allocation,
  and fosters economic stability.

3
History and evolution of finance
Ancient Times
Middle Ages to Renaissance
19th to 20th Century
21st Century
Use of barter and early forms of money the rise
of trade and banking in ancient civilizations
like Mesopotamia and Egypt.
Growth of banking, credit systems, and the
establishment of modern financial institutions.
Industrial Revolution, expansion of global trade,
development of stock markets, and corporate
finance.
Digital transformation, fintech, cryptocurrency,
and global financial integration.
www.nriwealth.com
4
Financial analysis tools

• Ratio Analysis Liquidity ratios, profitability
  ratios, debt ratios.
• Budgeting Tools Zero-based budgeting, flexible
  budgeting.
• Forecasting Methods Trend analysis, regression
  analysis, financial modeling.
• Cash Flow Analysis Understanding cash inflows
  and outflows to maintain liquidity.
• Break-even Analysis Determining the point where
  total costs equal total revenue.

www.nriwealth.com
5
The role of accounting in finance

• Tracking Financial Performance Provides a clear
  picture of financial health through income
  statements, balance sheets, and cash flow
  statements.
• Regulatory Compliance Ensures adherence to laws,
  standards, and regulations.
• Decision Support Offers data-driven insights for
  strategic decisions and investment choices.
• Risk Management Helps identify financial risks
  and develop strategies to mitigate them.

6
Short and long-term financial planning

• Short-Term Planning Cash flow management,
  working capital optimization, and debt
  management.
• Long-Term Planning Capital investments,
  retirement planning, mergers and acquisitions,
  and growth strategy.
• Key Considerations Market trends, economic
  forecasts, internal capabilities, and risk
  tolerance.

7
Responsible saving and consumption strategies
Set a budget
Avoid Impulse Purchases
Identify income, track expenses, and allocate
funds wisely.
Delay buying decisions to evaluate necessity.
Reduce, reuse, recycle
Use shopping lists
Optimize resource use, lower costs, and promote
sustainability.
Plan purchases to avoid overspending.
8
Future Trends in Financial Management

• Digital Transformation Use of AI, machine
  learning, and big data for enhanced financial
  decision-making.
• Sustainable Finance Focus on Environmental,
  Social, and Governance (ESG) criteria in
  investment decisions.
• Cryptocurrency and Blockchain The impact on
  payments, transactions, and asset management.
• Increased Personalization Tailored financial
  products and services driven by customer data and
  preferences.

9
Thank you very much!
www.nriwealth.com