Consider that in order to meet the social goals they needed to ensure financial stability. Similarly the only decision-making concerning the financial management of one form or another, directly or indirectly, sooner or later, influenced the general situations of these cooperative organizations.

Financial management is a process that involves income and expenses attributable to the implementation of sound management of money in the OFCC, and hence the profitability (financial) generated by himself. This allows us to define the basic objective of the financial management from two elements.

Generate the resources or income (income generation), including those contributed by the partners. And secondly the efficiency and effectiveness (effort / requirements) in the control of financial resources for acceptable and satisfactory levels in their management.

The first element contains specific aspects of the growth of OFCC is elucidated from the Colombian financial crisis of the early 80s, and a second opening stage with unaffiliated third parties in the 90s. The discussions around this issue placed in dispute for some boards meet the general management of several of the organizations studied. This in the sense of what was the most consistent and in which markets should pick and place financial resources.

With the second element arguments were not raised in connection with the efforts and requirements in the handling of money. This is undisputed in this context, reinforced by good management of administration. There were mixed views whether on managing the profitability and its impact in the purpose Cooperative (correct the imbalance of market power). The interest rate for loans of money partners and third versus maximizing profit in its placement, the relationship versus the cost of credit cooperative compliance purpose. The incidences of these discussions in the organizational structure is also deepened in subsequent paragraphs.

OFCC to be inserted in the markets in which your environment is characterized and regulated by the financial dynamics, this inevitably led to the specialization of the formal structure and financial management were key to organizational growth.

This led, mainly after the early 90s, widespread changes to organizational structure. In addition to its instances were considered first class, and other organizational activities become subordinate to it (eg business area or the same cash were regarded as central). The usefulness of the business and building the organization depended on financial management.

Interpreting the statement made by several cooperatives, we can say that the above was true, but the levels of financial profitability became an instrument (a means) but not in order to achieve the purpose of the cooperative enterprise or business (correct the imbalance market power).

It differs from the above, saying to themselves, with the SFTC where profitability is itself the very end. In the mid-90s begin to notice a reinvestment of the above statement. “The financial logic again returns to the same” which endorses the discourse of survival in the OFCC.

What can we do if external financing conditions are adverse?.

That is the question that remained in the air when this issue was addressed. The answer was always preceded by the justification raised to be getting enough to sustain profitability in the market for lack of solidarity economy. If that is not there, there was less work and organizational development was local and social.

To build organization (cooperative organization as such) have to prioritize and support the “other side of the coin”: the enterprise or business. And it financially and profitability are instruments and not ends in themselves necessarily. He was one of the arguments opposed to a logic in the SFCC that privileged the excessive growth in a career of imitating the SFTC. The financial and profitability in itself became the end of the financial management and organizational management thereof.

Although almost all companies and organizations use information technology in almost every business process is rife that there is no real awareness of the cost of this technology poses.

This entails serious disadvantages:

* Technological resources are wasted.
* Not properly budgeted costs associated therewith.
* It is virtually impossible to establish a consistent price policy.

The main objective of Financial Management is to assess and control the costs associated with IT services so as to provide quality service to customers with an efficient use of IT resources required.

If the IT organization and / or their clients are not aware of the costs associated with services may not assess the return on investment and may provide consistent technology investment plans.

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Distinction between economic and financial

The economic concept is related to the results, gains and losses, costs.

Financially is all related to the particular movement of funds, revenue (sources) or outflows (applications).

Financial Planning

Sound financial management does not evaluate or only if you have no money now: it comes to planning, to provide good governance for the future and the likely lack or excess of money (deficit or surplus).

The primary tool for financial planning is the financial budget, which is part of a larger system called the budgetary system. Within the budgeting system, the financial budget deficits likely to anticipate, develop strategies to meet them, and simultaneously analyzed the possible investment decisions to be made in the case of surplus.

Banking

Banks carry out various operations are those that characterize his administration. To pursue them is necessary to complete various forms.

Bank reconciliation

Is the analysis of the current account information. We compare the company’s accounting information, and analyzes the differences, making appropriate adjustments.
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