Financial Advice

Written by Patricia Tunstall
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Business managers are supposed to make a profit. They also solve problems on a daily basis. As a problem solver and member of financial management, a manager seeks financial advice from the source of the company's statistics: the accountant. Together, these business professionals determine the company's financial condition, the budget, and the accounting system that will be disclosed in its annual report.

The business manager's decisions will be only as good as the information supplied by the accountant. This financial analyst should not only be a sound bookkeeper, but be knowledgeable about tax consequences of business decisions. Above all, the accountant must be familiar with the reporting requirements of the Securities and Exchange Commission.

Practical Uses for Good Advice

Of course, good financial advice is the foundation of a successful business operation. The business manager, however, has many other practical uses for knowledge about accounting and for financial advice from accountants. The crucial presentation of the company's annual report to the shareholders and owners requires familiarity with the accounting system and financial statements.

Whenever the business manager addresses a professional group--trade groups, accountant organizations, government agencies--accurate and reliable financial information is essential. If the company has a profit-sharing plan, the manager must explain to employees the complexities of profit and how the company determines it. There are many possible circumstances that would cause a manager to address unions, lenders, or the press. When the moment arises, the manager must be able to call on a long-standing understanding of the financial workings of the company.

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