Determining Financial Viability
Determining Financial Viability Determining an organization’s financial viability is crucial to the short and long term financial success of the business. Having the organization’s finances in order allows the organization to understand the money that they have on hand, the equity of the business, and left over funds for other expenses. There are a number of financial factors that go together to determine the viability of a business. The relationship between accounting and the main financial department work together to determine the financial viability of the organization. A business needs financial success to achieve short term and long term success for itself. Financial viability is the ability of an organization to continue to fund its objectives and to complete the organization’s overall mission (Cleverley, Song, & Cleverley, 2011). Financial Viability means that resources can be financed without debt or equity funds to sustain the required level of resources needed for the organization’s activity levels. When a company is financially viable the organization has the capacity to grow and develop over time (Koleda & Lace, 2009). Growing and development allows for the business to complete its mission effectively and to ensure the best quality of its services.
The Viability of an organization needs to be determined by the appropriate financial party or parties. Each financial department has multiple roles and responsibilities. The main function of the main financial department is to make financial policies, financial planning, supervising financial activities, and more (Cleverley, Song, & Cleverley, 2011). Accounting is a sub function of the main financial department. Accounting is usually responsible for standard bookkeeping, taxes, financial reporting, payroll, taxes, inside auditing and more (Cleverley, Song, & Cleverley, 2011). However the roles and responsibilities will vary depending on the size of the organization. Both departments are crucial to
The Viability of an organization needs to be determined by the appropriate financial party or parties. Each financial department has multiple roles and responsibilities. The main function of the main financial department is to make financial policies, financial planning, supervising financial activities, and more (Cleverley, Song, & Cleverley, 2011). Accounting is a sub function of the main financial department. Accounting is usually responsible for standard bookkeeping, taxes, financial reporting, payroll, taxes, inside auditing and more (Cleverley, Song, & Cleverley, 2011). However the roles and responsibilities will vary depending on the size of the organization. Both departments are crucial to
References: Cleverley, W. O., Song, P. H., & Cleverley, J. O. (2011). Essentials of health care finance (7th ed.). Sudbury, MA: Jones & Bartlett. ISBN-13: 9780763789299 Koleda, N., & Lāce, N. (2009). Analysis of Financial Viability in the Context of Company’s Sustainability. Economics & Business, 191-11.