Financial Management

Reflective Journal

            Financial management is a module that provided us the knowledge about the principles and practices of financial management. As a cost consultant in construction industry, we have the obligation to learn this knowledge in our further development. Financial management is extremely crucial for a company to maximise the value of such company. The module has covered a few topics, including understanding financial reports, financial forecasting, capital structure and financing options, capital budgeting and managing working capital.

            Financial management concerns with the estimation of capital requirement, determination of capital composition, choice of sources of fund, investment of funds, disposal of surplus, management of cash and financial controls. Through these principles and practices, we can recognise and identity the problems in advance in the company. Therefore, we can make a preparation to resolve such problems. Besides that, this module also taught us the importance of ethical behaviour of person-in-charge and the inputs effort from all department in the firm to make the best decision.

            We also gave an assignment and test to ensure the ability to apply the theories and practices that have been taught in class. The assignment is a task that required us to prepare the pro forma financial statement for a company and evaluate these financial statements for the next year plan. It is a good practice for us to learn the ability to analysis and identify the problems in a company through using the financial principles.