Essay 2

Effects of good Financial Management

Have you ever thought what is the affects of good management system ? many people do not

have a lot of  information about how can a good financial management influence  their life, it

can also change their vision of life for a lot of factors. There are three specific  effect of 

management financial system ;one is  by helping to control expenses, maximizing profit , 

and identify areas  for cost reduction or revenue generation..

First ; the first effect of a good management system is by helping to control expenses. In other

words, giving to  your company a powerful framework that's designed to improve 

visibility ( controversey)  and keep you in control of your costs.because when the company 

tend to reduce costs and   expenses that helps  to have a  actual variances by cost center, profit 

center , department, or  project.

Another  strategy that can effects financial management is maximizing profit , and this 

strategy debating by many researchers from different country ,  as you know

That the  only goal for a company is not profit maximization because a firm cannot survive

in the long term and competitive market by purely focusing on earning extra profit. The

responsibility of the firm is to keep in focus the interest of the consumer, to be more specific ,

the company goal is to listen about what the consumers need, what is their interest and how

can they can let them feel satisfied, and having pleasure .

Finally , indentify areas for cost reudction is very important effect of good financial,

Management system,  it allows a business to increase  profits by lowering expenses, which 

can lead to increased competitiveness and a stronger financial position, and To identify cost.

 The quality of the product should not be affected by any recommendations of others.

To sum up, there are three effect of a good management strategy ; one is  by helping control 

expenses, the other is maximizing profit , and identify areas for cost reduction, these three

effecst  can help the company to sucess easily and withou any doubt, it can acheive all their

by  utilizing  this strategies .