Now Accepting Apple Pay

Apple Pay is the easiest and most secure way to pay on StudyMoose in Safari.

What are the benefits of establishing solid financial acumen in a company?

Categories: BusinessCompany

After few investment lessons and cases in the organization, according to President and Founder of Leadership for International Finance Blythe McGarvie, people start to think why and how to make investment decisions, instead of simply giving number that others want to hear (Video: Financial management: Creating financial acumen within your company, 2004-2007). By establishing solid financial acumen in a company, it makes everyone, no matter the employee is in HR department or marketing department, understands how the company makes money, and why, why-not, when, or what-if behind a financial decision-making process.

“Even those with years of experience, cannot perform to their maximum without applying financial analysis to decision making” (2006, p. 34), Hynes states. In my personal work experience, financial acumen is part of the company’s culture.

One small example is each staff has to know how tax works in mainland China and Hong Kong when we have to explain to our customers. We have to be more sensitive about free zone news that is related to gemstones, which is what we do.

Get quality help now
Dr. Karlyna PhD
Verified writer

Proficient in: Business

4.7 (235)

“ Amazing writer! I am really satisfied with her work. An excellent price as well. ”

+84 relevant experts are online
Hire writer

When we do our market research in a new area, we have to know what kind of customer can be a potential customer. I always treat myself as business woman instead of a sales person, even though part of my job is selling. In the organization, it is important that we all interact with each other in financial terms to better understand each other. Financial training would be really necessary for the success of the company, which will not only give us more confidence, but also allow us to be more professional and efficient with our work.

Get to Know The Price Estimate For Your Paper
Topic
Number of pages
Email Invalid email

By clicking “Check Writers’ Offers”, you agree to our terms of service and privacy policy. We’ll occasionally send you promo and account related email

"You must agree to out terms of services and privacy policy"
Check writers' offers

You won’t be charged yet!

Training lessons such as “analyze a company’s financial health by describing the relationship between return on equity (ROE), return on assets (ROA), net income percent and financial leverage; calculate the NPV, internal rate of return (IRR) and benefit/ cost ratio of major capital investment…” (Hynes, 2006, p. 39) can let us get a general idea of the expenses and profitability in the company. With this information, we can better understand what strategies can drive the company’s decision to success.

References

Hynes, J. M. (2006), The power of financial acumen. Financial Management, 34-40, Retrieved from Business Source Complete database. Video: Fifty Lessons. (Producer). (2004–2007). Financial management: Creating financial acumen within your company. London: Author.

Cite this page

What are the benefits of establishing solid financial acumen in a company?. (2016, Apr 23). Retrieved from https://studymoose.com/what-are-the-benefits-of-establishing-solid-financial-acumen-in-a-company-essay

What are the benefits of establishing solid financial acumen in a company?

👋 Hi! I’m your smart assistant Amy!

Don’t know where to start? Type your requirements and I’ll connect you to an academic expert within 3 minutes.

get help with your assignment