Imagine that you have established a small consulting practic

Imagine that you have established a small consulting practice as a limited company employing three other engineers and a secretary/bookkeeper. You also employ other casual workers to assist during peak times.
What professional advice would you seek to establish a financial management system for the company?. Outline the functions and essential elements of such a system.

Solution

Answer:

Professional Advices:

Functions of Financial Management:

Elements of Financial Management:

(a) Dividend for shareholders- dividend and rate it has to be declared;

(b) Retained profits- amount of retained profit has to be finalized which will depends on expansion and diversification plans of the enterprise.