The management of a company is a very important area for any entrepreneur or company manager. This management encompasses several sectors such as commercial management, financial management, and administrative management. Why is financial, commercial, and administrative management important for a company?
Commercial and administrative management of a company
Business management is based on all the tasks related to the commercial activities of a company. It can define strategies to determine its selling price, monitor sales, and gather information on the company’s customers and suppliers. It also includes forecasting, formulating, and monitoring sales, enabling it to determine its profitability and therefore its future sustainability.
As a business owner, management is part of your daily life, because the tasks are numerous and repetitive. They cover a wide range and their variety depends on your structure and your activities. Management of purchases, sales or services: supplier/customer purchase orders, quotes, invoices, payments, reminders. There is also mail management, personnel management, legal follow-up, tax, and social obligations. This will help the company to maintain the document for audits and also keep the product of the company running. To summarize it all administrative, and commercial management is the backbone for any company or business.
Financial management of a company
For private individuals, financial management is very simple: balance expenses and income, save as much as possible and monitor your bank account. For companies, financial management focuses on the financial aspects of expenditures or investment projects based on expected profitability and analyzing their results from a financial point of view. For financial companies such as banks or investment funds, financial management includes the management of cash flows, revenues and expenses, investments, loan origination and loan repayment terms. Financial management involves forecasting cash flows and incompressible expenses, budgeting, and finally controlling during execution.