Administration is a whole series of activities arrangement of the basic work done by a group of people in cooperation to achieve certain goals. Administration as a process is broken down into 8 dapay common element that is dynamic, ie:
- governance keragaan
- governance leadership
- governance relationship
- the information system
- the procedures of personnel
- financial system
- planning supplies
- PR system
From 8 above elements will be discussed in this article is the sixth element in the administration of "tatakeuangan" or "financial administration".
Financial Administration, is a "truism", or at least the fact, that the costs are available for a country that is actively doing development, such as Indonesia, are always limited compared to the number of development activities that need to be financed. Therefore it is logical also when all efforts should be made so that the costs are available, both from domestic income tax form, saving people, saving the government and state revenues from exports, as well as in the form of a loan, such that its use is managed by The limited cost to obtain maximum results. (Dr, Sondra P. Sagian, M, PA Ph. D: Administration Building, Mount Agung, Jakarta, 1983, p 156).
Financial administration also can mean a range of settlement activities in the form of budgetary expenditure, the determination of the source of costs, use, keeping, and accountability for financing in collaboration achieve certain goals.
In other words, all of the steps further ensure the use of cost provided it to become more efficient, effective and economical must be taken.
It was clear that the problems encountered in the field of financial administration is a very complex problem whose solution requires imagination, innovation, intellect and great creativity.
In more detail can be raised several issues that would stand out in the areas of financial administration, such as:
- The problem of limited cost available or may be available to fund development efforts to be implemented to accelerate the improvement of living standards of all people.
- Problem increase people's confidence in the legitimacy of the government, which acts as the main implementer of development activities.
- Problems increase the confidence of foreign countries, international agencies and the seriousness of the ability of government officials to absorb and use aid or loans for the sake of the people.
- Problems incompatibility parundangan provisions governing state finances in general.
- Problems administrative capacity building of government officials to lead, develop and implement development activities.
- Problems nagara financial balance between the Central Government and Local Government, associated with economic principles.
- Problems financial administration system in general no longer compatible with the natural independence, have not talked about the discrepancies existing system of financial administration with the demands of development.
- Problems still have a shortage of awareness of the people to meet their financial obligations to the state, such as the presence of a tendency to circumvent the obligation to pay taxes.
- Problems reporting systems often only demonstrate the legality penggunaanbiaya and less shows the efficiency of the use of such costs.
Administration has been widely studied with scientific means and according to certain basic framework, so that Plank had a bunch of knowledge that can be used as guidelines for human cooperation. Administration of targeted groups of knowledge called science of administration. The review of Finansia elements as a concept or tatakeuangan as a process to produce a bunch of knowledge called science of financial administration.
Science finance administration discussed a whole series of activities structuring the budget, determining the source of costs, use, keeping, and accountability for financing in collaboration achieve certain goals.
The knowledge the group has evolved into several sections large enough.
The first is a group of knowledge about planning and expenditure of money for the cooperation. It is a branch of knowledge of financial administration called Budgeting shopping. This new science called "Planning-Programming-Budgeting System" which is famous for stands "PPBS". It literally can be translated into-Programming-Budgeting System Planning. But according to the meaning and content can be translated Based Budgeting System in the framework of a program or the System Analysis Based Budgeting System in the Framework Programme A Specific Plan. More simply to facilitate the use it can be used the term presumably Based Budgeting System Program.
One other aspect of financial administration is the recording of all receipts and expenditures in the cooperation. Other branches of knowledge in financial administration is concerned with the examination of the accuracy of the measures in the financial field, is commonly referred to as Audit.
Elements of financial administration focuses on the responsibility for funding for a variety of uses in combination with other types of financing that is best, Financial Administration regarding the following matters:
- How much amount of funds required.
- The source of the funds.
- When these funds will be put into use.
Financial administration activities include the following:
- Planning and forecasting.
- Coordinate the various financial decisions.
- Integrates with environments.
- Financial Supervisory make notes and report on financial information.
To be more effective and efficient in conducting financial administration, it is necessary to set up a financial pebgawasan. Financial supervision is the activities related to the implementation of the financial plan. Financial oversight is not merely to check the flow of money / funds, but also relate to the evaluation plan being implemented. Oloeh Therefore, financial supervision covers two main steps, namely:
- Determine the activity standards.
- Comparing real activity with the standards contemplated in item.
Such measures are not only necessary for the supervision of the activities that have been planned, but also and even less importance to menyususn plan that will come.
In the development of the administration is often associated with financial management. In practice, financial administration and financial management have some similarities. In the era of globalization is more popular term financial management of the financial administration.
Financial management is spending faceted company learned of a financial manager. Financial management is concerned with financial affairs, although not all are related to the monopoly of money into financial management. Financial management can be defined as a function pengetrapan into the planning and supervision of financial functions. (Walker, W. Ernest: Essentials of Financial Management, Prentice Hall, New Delhi, 1978, pp. 1-2).
As a complement to need to put forward the role of which is run by a financial manager. Role or function can also be mentioned as described below, a little much a simplification / streamlining of functions of financial manager in essence extremely complex.
Financial planning (financial planning)
- borrowing plan, if this is to be done
- plan and make forcasing revenue and expenditure
- advise on financial payments
- preparing financial statements
Management of cash (cash mamagement)
- open a bank account and melekukan deposit (deposit)
- set petty cash and bank deposits
- arrange payment of obligations with maturities
- held a record of cash transactions
Management of credit (credit management)
Handling of securities (security flotation)
- arrange repayments of loans (installments)
- signed checks
One way to examine and study the financial situation is by way of financial ratio analysis. To make rational decisions in accordance with the purpose, a financial manager must have a specific analysis tools. Financial analysis carried out either by an outside party (external) and the inside (internal). For the company itself, its financial analysis of the company will assist in planning.
To assess the performance and condition of the company, a financial analysis requires certain sizes. Size often used is the ratio, which shows the relationship between the two financial data. Analysis and interpretation of various ratios will provide a better understanding of the achievements and financial condition of the analysis of financial data.
Financial ratio analysis involves two types of comparisons. First, the analysis can compare the current ratios with ratios in the past and expected in the future for the same company. In a comparison over time, it is better done comparing the original data as well and not merely comparing the ratios alone.
Methods for benchmarking the second is to compare the ratios of a company with companies similar gradually and roughly the same size, or the average of the industry at the same time. Such comparisons provide an understanding of the achievements and financial condition of the company relative to the industry.
In general, the various ratios that are calculated can be grouped kedala four basic types:
- The liquidity ratio, which measures the company's ability to meet its short-term financial obligations.
- The leverage ratio, which measures how much the company dibelanjai with debt.
- The ratio of activity, which measures how effectively the firm uses its resources.
- Profitability ratios, which measure the overall effectiveness of management as shown on the profits earned from sales and investment.