At the start of this course on financial management we want to frame the position of finance as part of the overall management needed to run a business. As the figure below shows, running a business is more than money and profit (although they are important for going concern). As a social entrepreneur, you probably also want to communicate your social impact (impact management), follow up on whether you are using your resources optimally (process- and resources management), and maximize the sustainability of your organization (CSR – healthy business management).
In this module we focus only on one of these four domains: financial management, impact management, process- and resource management and health business management. But be aware that all four are equally important. And all four need data and numbers, followed up by means of a management dashboard. And guess who, in most organisations is expected to monitor these numbers? Exactly, the financial (wo)man of the team.
In the next topic we shortly explain these four domains of management:
Process- and Resources management
Healthy Business management
Once the place of finance within management is clear, the following topics will be able to focus entirely on financial management.