Financial Management Challenges Research Articles

Research on Informatization and Intelligent Transformation of Financial Management in Financial Enterprises

This paper focuses on the financial management information and intelligent transformation of financial enterprises. Based on the analysis of the characteristics and challenges of financial management in financial enterprises, this paper expounds the application status of information technology and intelligent technology in financial management, and analyzes the driving factors of the transformation of information technology and intelligent financial management. At the same time, this paper focuses on the application of big data, artificial intelligence, blockchain and other key technologies in financial data processing, decision support, risk control, data security and other aspects. Finally, it puts forward the implementation path of financial management informatization and intelligent transformation, including top-level design, process optimization, talent training and so on.

Analisis Tingkat Literasi Finansial Mahasiswa Manajemen Bisnis Syariah di STAI Al-Kifayah Riau: Konsep, Sikap, dan Perilaku

Purpose: Students must have a good understanding of finance, especially when facing the challenges of financial management in today's era. The purpose of this study was to determine how proficient Sharia Business Management (MBS) students at STAI Al-Kifayah Riau are with basic financial concepts, attitudes, and behaviors related to finance. Methodology: This study was conducted using a quantitative approach through a survey. The stratified random sampling method consisted of 85 MBS students who were randomly selected. Data were collected through a financial literacy questionnaire distributed online via Google Form. Results: The results of the analysis showed that MBS students at STAI Al-Kifayah Riau had high financial literacy in basic financial concepts and products, with 17% in the high category, 28% in the medium category, and 55% in the low category. Financial attitudes, with 21% in the high category, 34% in the medium category, and 45% in the low category, and financial behavior, with 20% in the high category, 31% in the medium category, and 49% in the low category. Limitation: If the sample is only taken from one institution (STAI Al-Kifayah Riau), the results may not be generalizable to students in other institutions or different areas. Contribution: The results show that the majority of MBS students of STAI Al-Kifayah Riau do not understand financial concepts, attitudes, and behaviors. This suggests that education should be conducted to improve students' financial knowledge, especially by offering courses or training that focus more on financial management.

Assessing the Challenges in Managing School Funds for Heads of Secondary Schools in Kilolo District, Tanzania

This study sought to identify the “Challenges in Managing School Funds for Heads of Secondary Schools in Kilolo District, Tanzania” through a mixed approach with the population of one District educational officer, six heads of schools, six school bursars and sixty-three secondary school teachers who obtained through purposive sampling and simple random techniques. Questionnaires and interviews used to collect data. Data analysed through thematic analysis and descriptive statistics with the aid of the Statistical Package for Social Sciences (SPSS) computer software. The findings found that heads of secondary schools faced numerous challenges such as inadequate funds from the government, inconsistencies disbursement of money from the government and bureaucracy. In addition, distance (remoteness of the schools), transport cost and time consumer when heads of schools needs procurement budgets approved from the District Educational Officer, poor support from the parents and some staff as well as denying school management training on financial management issues were among the challenges. Lastly, the findings found that training, workshops, provision of seminars will enhancing the heads of schools’ financial management literacy. Moreover, heads of schools should involve other staff members, school management team (SMT), and the use of educational financial guidelines as a source of knowledge and skills to manage schools’ fiscal resources. It also recommended that the heads of schools should adhere to the proper practices of financial management through monetary auditing. Likewise, Tanzania government should provide managerial training, workshops and seminars as the best strategies to diminish financial management challenges as well as introducing financial management courses in teachers’ colleges and universities prepare experts in the schools’ financial management activities.

Navigating financial management challenges in the Scottish charity sector: insights and strategic approaches

This paper investigates financial management within Scottish charities, emphasising the challenges faced in external scrutiny, comparative financial information, and accounting practices. It employs a survey and a review by the Office of the Scottish Charity Regulator to assess impacts on smaller charities, highlighting issues with transparency and compliance. The study advocates for policy interventions and capacity building to improve sector resilience and transparency, thus enhancing effectiveness and sustainability in the voluntary sector.

Financial Management Challenges in Georgia’s Higher Education Institutions

The effective management of financial resources in higher education institutions significantly impacts the overall system’s functionality. The role of education and scientific development in a country’s economic progress cannot be overstated. Georgia possesses the potential to achieve economic growth through its intellectual and educated human capital. However, despite recent reforms, the education system grapples with persistent shortcomings and challenges, hindering the creation of well-prepared and competitive graduates. Strengthening the education system is essential for Georgia to thrive in the global arena. While funding for education has increased over the years, mere financial inflow does not necessarily correlate with improved educational quality. To address this, a strategic and tactical approach to reform, along with efficient distribution of financial resources, is crucial. This paper investigates the impact of existing funding policies on Georgia’s higher education system. It delves into the structure and dynamics of funding for higher education institutions, examining the nature and significance of previously funded projects. Additionally, the study discusses and analyzes the role of education reforms in promoting overall development. Drawing on both qualitative and quantitative analyses, the recommendations put forth within this framework aim to empower stakeholders in overcoming the challenges faced by Georgia’s higher education landscape.

Financial Management Challenges and Best Practices of School Heads of Public High Schools

This paper is an examination of the various financial management practices of school heads in public schools with a focus on the challenges experienced and best practices implemented by school heads in relation to school financial management. The study made use of literature review to answer its objectives. From the study, it was shown that school heads experience challenges in financial management which include lack of training, weak financial management skills, lack and/or delay of funds, absence of financial support staff, poor collaborative planning, numerous bookkeeping tasks, unorganized record keeping, frequent changing of policies, absence of permanently stationed bookkeeper, and adherence to complex laws and policies. Despite these challenges, school heads have reported best practices which include collaboration with school focal person for budgetary planning and the keeping of financial record in a safe place. Some of the recommendation to address the challenges faced by the school heads include the hiring of school heads competent in financial management, continuing education and upskilling of school heads on financial management, empowering school heads on funds acquisition, assigning bookkeepers to all schools, maximizing School Governance Councils, documenting and sharing of best practices, and the conduct of further research in relation to school financial management.

Strategic Insights into Financial Management Challenges Faced by SMES

Strategic Insights into Financial Management Challenges Faced by SMES

Financial Management Challenges Heads of Schools Experience in Public Secondary Schools in Mbeya Rural District, Mbeya Region, Tanzania

Tanzania has decentralized financial management decision-making to school leaders and their communities. Management of financial resources is essential for the expansion of the skillful and resourceful use of finances in educational institutions. Financial management is the fundamental element on which the success of any organization depends. Where management is weak, success is hard to ascertain. This study explored the financial management challenges heads of schools experience in public secondary schools in Mbeya rural district. The data were collected from 66 respondents using questionnaire and interview guide. The study used simple random sampling and purposive sampling techniques. The quantitative data were analyzed using Statistical Package for Social Science (SPSS ver. 20) and qualitative data were analyzed through content analysis. The study results revealed that, heads of public secondary school face common challenges particularly on budgetary, school accounts, financial reviews, financial accountability and financial recordings which in one way or another reduce work ability and responsibility. The study recommends that, heads of schools should be given full mandate on utilization of capitation grants and other funds, management workshops should be conducted to both heads of schools and teachers, and also there should be a need of organizing regular parental meetings to curb managerial financial challenges facing heads of schools on provision of quality education in public secondary schools. The government should lay down a policy on managerial skills training for the newly appointed and continuing heads of schools as this will enhance effective school management, hence better attainment of school goals and objectives.

Financial Management Challenges and Strategies of Public Secondary School Leaders in Davao City, Philippines: A Phenomenological Multiple Case Study

Utilizing financial resources wisely has been one of the education policy objectives to achieve quality education. However, school leaders in their respective school size faced financial management issues that inspired them to utilize financial management strategies. Hence, this study sought to examine their financial management challenges and strategies under the cases of small, medium, large, and mega schools. Six research questions guided the paper which employed phenomenological multiple case study. The sample size of 12 with three school leaders per case in Davao City, Philippines was drawn using the stratified convenience sampling technique. The researchers conducted one-shot in-depth interview and gathered the School Monitoring, Evaluation, and Adjustment (SMEA) document. Employing Colaizzi’s technique and cross-case analysis, the researchers analyzed and clustered responses into themes for single cases which led to the systematic analysis of the multiple cases. Results revealed that school leaders’ financial management challenges involved inadequate staff assistance in small school; delayed release of funds in medium school; high needs and priorities in large school; and difficult Maintenance and Other Operating Expenses (MOOE) liquidation in mega school. In terms of similarities, all cases experienced limited funds and balance and adjustment pressure. Regarding the financial management strategies, school leaders utilized prioritization in small school; prompt liquidation and SMEA in medium school; strict and continuous implementation in large school; and shared governance in mega school. In common, they shared the same strategies which were develop financial plan, ensure transparency, and engage stakeholders. Concerning the financial management insights, they conveyed similar realizations such as competence and honesty. Thus, the theories that governed this study were affirmed. Given these findings, the researchers encouraged school leaders to gain knowledge and improve best practices like financial plan development, transparency, and coordination with stakeholders. DepEd leaders might also consider the enhancement of the MOOE guidelines and policies. Moreover, teaching and non-teaching personnel as well as the stakeholders could take part in financial management through collaboration. Finally, future researchers are encouraged to pursue a related study quantitatively to clearly define the types of strategies that school leaders utilized.

Empowering Local Communities: Promoting Financial Management in Village-Owned Enterprises (BUM Desa) for Sustainable Tourism Development

Local communities have increasingly become players that have significant roles in the tourism sector, utilizing their unique cultural and natural resources to attract visitors and stimulate local economic growth. Village-Owned Enterprises (BUM Desa) play a crucial role in driving sustainable tourism development by allowing local communities to actively participate in managing and benefiting from tourism activities. However, effective financial management within these enterprises remains a critical aspect that requires attention and improvement. This journal manuscript presents the outcomes of a community service activity conducted to address the financial management challenges faced by Village-Owned Enterprises in the tourism sector. The community service activities involved a series of workshop sessions aimed at providing practical guidance and insights to BUM Desa representatives. These sessions were supplemented by the publication of a book titled "Financial Management of Village-Owned Enterprises in the Sector of Tourism" and an article in the mass media platform Kumparan about the workshop activities. Through these efforts, local communities were equipped with the necessary tools and knowledge to make informed financial decisions, optimize revenue generation, and mitigate financial risks. By improving financial literacy, we can unlock the full potential of local tourism, leading to sustainable economic growth, social empowerment, and enhanced community well-being.

The Correlation of Financial Management Practices and Controlling Mechanisms for Financial Management Challenges and Issues The Case of Franciscan Missionaries of Mary Congregation

The study analyzed financial management practices and controlling mechanisms for financial management challenges and issues in religious congregations, specifically the Franciscan Missionaries of Mary Congregation. The study was based on a questionnaire survey sent to 305 respondents among the religious sisters. Weighted mean and the Spearman rho coefficient values were applied in the statistical processing of the data. The results showed a significant positive relationship between financial management practices and the controlling mechanisms for financial management challenges and issues, suggesting that a lack of control mechanisms could lead to the possibility of fraud. The study suggests that good financial management practices impact management resources and decision-making. The study highlights the importance of financial management practices for non-profit organizations, as they can be prone to financial challenges and issues due to lack of resources or mismanagement and its effectiveness is crucial for the sustainability, growth, and impact of the organization.

Integrated Financial Management Assistance through E-DAMS Application Development at Mukhtar Syafa’at Blokagung Islamic Boarding School, Banyuwangi

This community service research focuses on addressing financial management challenges faced by PP Mukhtar Syafa'at, an Islamic boarding school in Banyuwangi. Established in 1990 with a substantial student population, the school grappled with manual financial recording, leading to errors, omissions, and decentralized contributions handling. This study employed Participatory Action Research (PAR) to implement an integrated financial management solution, introducing computerized recording and an accompanying application. As a result, the school transitioned from a manual to an integrated system, bolstered by computerized recording and a financial reporting application, enhancing administrative accountability and accuracy in financial reporting.

Financial Management Challenges Faced by Islamic NGOS in Malaysia

Non-governmental organizations (NGOs) play an important role in carrying out aid missions to the community at the national and international levels. However, the reputation of these organizations is somewhat affected, especially when financial management scandals begin to emerge, particularly involving Islamic NGOs. This issue is a source of displeasure and concern, especially among donors and agencies that provide assistance to these NGOs. Failure to be transparent when providing information results in donors feeling less confident in the NGO’s credibility and this leads to prospective or even current donors withdrawing from participating in philanthropic contributions. Therefore, this study aims to examine the financial management challenges faced by NGOs in Malaysia and also provide a comprehensive literature on challenges and previous studies related to financial management issues faced by NGOs. Findings indicate that the legitimacy, accountability and transparency, as well as accountability practices and governance are some of the challenges faced by Islamic NGOs in Malaysia when managing their own finances and public funds.

Financial Management Challenges and Impact for Successful Businesses

Financial Management Challenges and Impact for Successful Businesses

Challenges of Financial Management of the Higher EducationInstitutions in Georgia

The funding of the higher education institutions and its efficient managementaffects the functioning of the whole system. The level of development of aneducation and science has an important role in the economic development ofthe country. Georgia has enough potential to achieve economic developmentby intellectual and educated human resources. Despite the reformsimplemented in the recent years, there are still many shortcomings andchallenges left in the education system that are hindering the creation of welleducatedand competitive human resources. Without strengthening theeducation system, it is impossible to participate in a global competition. Theincreasing of financing of the education system over the years does not meanraising the quality of education. Developing the correct strategy and tactics ofthe reform and adequate and efficient distribution of financial resources iscrucial. The aim of the paper is to study impact of the existing funding policyon higher education system in Georgia. The structure and dynamics of thefunding of the higher education institutions, the nature and importance of thealready funded projects are examined in the study. The issue of promotion ofdevelopment of education through the reforms implemented in the educationsystem is also discussed and analyzed in it. The study is based on thequalitative and quantitative analyses. The recommendations issued withinthe framework of the study will support stakeholders to overcome the current challenges and improve financial management policy of higher education institutions.

Empowering Women in the Agricultural Value Chain Via Islamic Blended Products to Attain the Agenda 2030 in The Gambia

The importance of gender equality and women empowerment has become the central piece in numerous development agenda around the globe. In the Gambia, as part of the national development agenda, the government has eye marked key priority areas to champion the course of women empowerment. In addition, the government has enacted laws and ratified several other international goals including the Agenda 2030 to support this course. However, women entrepreneurs especially those in the agriculture value chain have faced numerous financial management challenges in conducting business activities. On one hand bank loans are expensive for them, and other the other hand those with surplus got minimal returns on their savings and investments. Thus, this paper aims to deliver the intended outcome of Maqasid Al Shariah by harnessing Islamic social financing and utilizing funds from the surplus side to provide sustainable and impactful financing for women on the deficit side via Islamic Blended finance. In addition to de-risking investment towards women empowerment, our proposed model offers a better return for those on the supply side and cheaper rate for those on the demand side by minimizing intermediation and transaction cost. It is anticipated that this paper will contribute to the achievement of the 2030 Agenda in The Gambia and also has the potential to be replicated in other developing countries.

Effectiveness of School Heads’ Financial Management Skills in Provision of Quality Education in Secondary School

The main objective of this study was to evaluate the effectiveness of school heads’ financial management skills in the provision of quality education in secondary schools. This study explored secondary data by reviewing documents and literature materials from online publications and libraries to attain the intended purpose of the study. The study found out that financial management skills such as mobilizing school funds, monitoring, evaluation of budget, and auditing skills were essential for school financial management. The study also found that most of the school heads possess insufficient skills in financial management as school managers. Other financial management challenges were a shortage of school funds, poor monitoring, evaluation, and auditing of school finances. The study suggests strategies such as capacity building among the school heads. Also, decentralization of financial decision making, relevant school mission, and vision, enhance effective monitoring, evaluation, and auditing of financial report as strategies for improving school heads’ financial management skills. The study recommended the necessity of having school heads who are skilled in school-based financial management strategies. The study requested responsible departments or ministries concerns with education to make financial management skills be one of the pre-condition for hiring or promoting a teacher to the top post of school administration.

Local Government: Getting the South African Municipal Finances Right

Local government in South Africa from Musina to Cape Town have faced strategic financial management challenges of budget shortfalls, financial shambles and distress, leading to unmaintained infrastructure, deteriorating services quality, increasing municipal deprivation and intensifying social exclusion which is the unfortunate history of many municipalities. Municipal effective control leads to design, muster and fiscal wealth may accumulate effective approaches that accomplish its duty to be answerable to its inhabitants. Financial control and stewardship are preceded by the interconnected management facets towards augmenting the growing design, catalytic and hands-on route. Financial control is facilitated by effective reporting and auditing is chiefly paramount for accountability in the local government environment. Weak municipal management accountability and oversight institutions prevailing in local government compromise its integrity and a potential loss to the public’s confidence. Local government is confronted, by municipal fiscal administration morass and forgone fiscal reserves. The efficient budget implementation should conform to the will of the legislature’s authorizations. The financial position of municipalities in terms of the business model represents assets, liabilities and equity and displays the financial health at a specific time. The community and major stakeholders use financial statements to determine the financial position of any organization. The financial position and health determine how efficiently a municipality is expanding its resources and investment. This paper seeks to close the gap that other studies have not ventured to. This paper qualitatively and descriptively explores municipal financial management enigma and proposes a turnaround to get local government finances right

ISSUES AND CHALLENGES OF FINANCIAL MANAGEMENT PRACTICES IN ISLAMIC FINANCIAL INSTITUTIONS: EMPIRICAL EVIDENCE FROM BANGLADESH

Studies suggest several issues and challenges of financial management practices in Islamic banks and insurance companies and Islamic non-bank financial institutions (INBFIs) in Bangladesh. The purpose of the research is to examine the issues and challenges of Islamic Financial Management (IFM) from an empirical perspective. The study relies on a structured questionnaire survey in prominent Islamic financial institutions (IFIs) of Bangladesh for achieving its objective. After confirming data reliability based on Cronbach's alpha, the study proceeds to analyse by applying descriptive statistics and principal component factor analysis using correlation, Kaiser-Meyer-Olkin (KMO) and Bartlett's Test and VARIMAX Rotation. The study finds that there is no separate regulatory framework to supervise and monitor IFIs in Bangladesh rather the central bank regulates the Islamic financial system based on the existing laws and regulations of the conventional financial system. The findings of this study suggest that the government should establish a separate regulatory body for monitoring the IFI’s functions so that they can perform their activities smoothly in the congenial environment in Bangladesh.
 JEL Classification Codes: G10, G21, G23.

Financial Management Challenges: A Case of Women-owned SMMEs in Gaborone

The research is financed by BA ISAGO University, P.Bag BR94, Gaborone, Botswana Abstract The study seeks to investigate the causes of financial management challenges faced by women-run SMMEs in Gaborone, Botswana; given the background that the Government has established agencies and initiatives that support this sector financially and provide advisory services. Ways of mitigating the established challenges were suggested. Women entrepreneurs contribute immensely to Botswana’s economy. The Government of Botswana, in its bid to assist economic diversification and citizen empowerment, had several programs to support SMMEs including Business Botswana and Women In Business Association (WIBA). These provide funds and business advisory services to women-run SMMEs. Research has shown that 80% of SMMEs in Botswana fail in the first 3 - 5 years of the establishment phase. Preliminary reviews of literature disclosed that poor financial knowledge proves a real obstacle to most of the small women-run business. This includes insight and skill on what to do when a payment is received, how to manage that money, and investment strategies for growth. The researchers used desktop research and questionnaire surveys. The sample was 41 women-run SMMEs in Gaborone and non-probability convenience was used to sample the women-run SMMEs. Most women entrepreneurs are not looking for external funding, which is an issue of concern to policy makers for women businesses that contribute significantly to the economy. Lack of basic financial management and record keeping skills are affecting women, hence relying on very minimal internally generated funds. Financial institutions and the government should encourage women in business. Keywords: SMMEs, SMMEs finance providers, Financial Management challenges DOI: 10.7176/RJFA/11-14-14 Publication date: July 31 st 2020