A company's financial management involves a number of different things. In order to ensure that your company’s financial resources are sufficient, you must plan its financing. The most important thing with regard to short-term financial planning is to ensure your company's ability to take care of its payment obligations on time. Long-term financial planning aims to generate profit on the company’s capital. By logging into Enterprise Finland, you can make calculations that will help you in financial planning.
By budgeting you can ensure that your company's financing will cover the entire budget period, which is usually the length of the financial year. It is advisable to familiarise yourself with the different budgeting methods, so that you know which will suit your company best.
The financial management of your company also includes investments and their planning. The need for investment is partially dependent on the line of business, however. Service companies generally require less investment than production companies.
A financial statement must be prepared for each financial period – i.e., a calculation that indicates your company’s result and financial position. It can be prepared by your accountant, for example, but you as the entrepreneur are always responsible for the financial statement of your company. Therefore, it is important to understand what kind of financial statement you are signing.