Integrating Business Management Processes

Chapter 10Financial Management

10.1 Introduction

The finance department is the nerve centre of any business organisation. Any dysfunction of the finance department will paralyse the operational activities of the company. The company will experience liquidity/cash flow difficulties and will not be able to procure its supplies. Suppliers will refuse to deliver goods because of unpaid bills. Bankers will attempt to recover its debts. Cost reductions in manufacturing will result in the production of shoddy goods. The firm’s competitors will thrive. These are some of the fall outs from finance department dysfunction. Corporate malfeasance during the last one-and-a-half decades has led to the collapse of major profitable companies (Ritholtz, 2013). ...