Training Manual Focusing On Financial Valuation Essay Example for Free

Training Manual Focusing On Financial Valuation Essay Any company, especially one that has recently gone public, needs a manual on financial systems that will work hand in hand with its overall business strategy and its structural organizational strategy. In the case of Strident Marks, which is now a public company, valuation in terms of business and actual return on investment increased as the responsibility of profitability intensifies with the presence of stockholders. It is important that the rules and the standards of valuation are set out clearly, as well as the process needed to achieve these rules. Valuation in investment can be divided into actual return on investment in profit, and perceived return on investment in time, efficiency, and output. The training manual should have separate areas that address these two, as well as a consolidating guide that will allow these factors to work together for the good of the company and the shareholders. The profit valuation is the simplest tool as it entails only a cost-benefit analysis and a projected profit versus expense report. Since it is quantifiable, the gains and losses are easily seen and departments can easily account for any changes in policy, as well as in meeting and exceeding targets. Quality returns on investment, on the other hand, are difficult to value and justify. For example, the implementation of an information system cannot be quantified into concrete results in terms of profit, but only to the benefits to the employee, the shareholder, and of course, the client. A method that can be used is to assign actual, numerical values on a grading scale that will allow these factors to be valued. The financial department is crucial in this asect as this division can quantify the value of a perceived benefit versus the actual value of the company as a whole. The financial department can provide a more accurate numerical assessment as opposed to a haphazard assignment. This branch can also ascertain the feasibility of an investment versus the benefits to be gained from it. References Financial Regulation — Good Rules and Bad. (1993). World Bank Development Brief, 12. Retrieved January 17, 2007 from http://www.worldbank.org/html/dec/ Publications/Briefs/DB12.html