Business Analysis: Financial and Accounting Problems

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Financial management is the most critical problem limiting the growth of any business. The concept of profit margins, cash flows, and reducing costs are the main financial problems encountered by my company and other businesses, no matter the size. I tend to have more losses than profits of the firm. My business lacks knowledge in the spheres of investment. With the idea of having a solution to my financial management problem, I had to hire a financial consultant who could manage the enterprise's economic and accounting activities (Wang, 2009). Nonetheless, my efforts have just decreased the size of the problem rather than eliminating the problem. For this reasons, therefore, I decided to move forward to gather more ideas concerning the problem-solving process by use of divergent and convergent thinking processes to have the best and long-time solution.

Divergent thinking process

Divergent thinking process refers to the method that is used to provide creative thoughts through exploring various options. The process follows a given logical step to achieve one of the best solutions to the problem. The process is important as it offers multiple solutions to the problem at hand. I decided to use different thinking process to get multiple options that could help in solving my financial management problem. During the brainstorming session, I observed that every individual had a basic solution to financial management. I also learned better steps to conduct a brainstorming session. The following are the responses received from the brainstorming process:

Create a budget or rather a spending plan to have a track of the business expenditure.

Replace some of the significant expenses with something else in the budget. For example instead of using electricity shift to solar power.

No business lacks debts, to have a better financial management create a plan that will help in paying off the business debts.

Research from internet, books and great business managers to get more knowledge concerning solutions to financial management problems.

Consider doing more research on investment platforms that could help in understanding and get areas best for the business to have its investments.

Convergent thinking process

Convergent thinking process refers to the method that offers the ability to provide a correct answer to a given problem. The process focuses on coming up with a well-established and a single answer to a given problem. It helps in generating a correct answer. It emphasizes on accuracy and logic. Some of the plans render success while others do not have due to the differences in planning and implementation of the solutions to solve the problem at hand. The following are the responses from the convergent thinking process.

Planning

Create a budget or rather a spending plan to have a track of the business expenditure.

A budget will help in enabling me to purchase business resource with a plan and eliminate impulse buying that could waste the finances of the firm.

No business lacks debts, to have a better financial management create a plan that will help in paying off the business debts

Debts are excellent sources of a business financial fall. Having a plan or repaying will ensure elimination of the debts out the business financial columns.

Research

Research from internet, books and great business managers to get more knowledge concerning solutions to financial management problems.

Research is a source of knowledge. If the firm consultant does more research of financial management, he/she will be in a position to get more solutions to the problem.

Consider doing more research on investment platforms that could help in understanding and get areas best for the business to have its investments

Investments are one source of financial income in business. The research will enable the company to understand the best and profitable areas to invest from to avoid the problem of financial management.

Prioritization

Replace some of the significant expenses with something else in the budget. For example instead of using electricity shift to solar power

Significant expenses increase the amount of cash required for the business expenditure. Eliminating the large expenses will reduce spending for the firm.

Black Hat/Devil’s advocate thinking

Black Hat thinking process explores ways in which an idea may not fit the problems that we need need to overwhelm. The process will consider the obstacles as well as the downsides of a given solution towards solving the issue of financial management.

Create a budget or rather a spending plan to have a track of the business expenditure.

The solution should be implemented to reduce impulse buying of resources in the firm. Implementing the solution may reduce the purchase of resources, which are important and necessary for running the business on a daily basis. The major weakness of the solution is that it does not offer additional finances into the firm. The problem resolution process could occur through having a list of priorities in the budget. The procurement department might resist the solution as it gives them additional tasks. The solution does not consider the employees.

Research from internet, books and great business managers to get more knowledge concerning solutions to financial management problems

The solution offers more sources of knowledge about financial management. The business will have a competition for power because of implementing the solution. Finding books about financial management is the primary weakness of the solution. The problem resolution can occur by creating a library in the business set up. The communication department might resist the solution. The solution does not consider having time for research in the firm.

Conclusion

From the above illustration, it is evident that divergent, convergent and black hat thinking process are essential in solving financial management problems in business. The divergent process offers various solutions to the problem while convergent works out to select the best and correct solution. Furthermore, black hat offers the risks of implemented the best solutions selected.

References

Wang, S. F. (2009). Modeling as Thinking Process: The Leverage is Thinking Role, not Thinking Skill. In Proceeding of the 17th International Conference of the System Dynamics Society & the 5th Australian and New Zealand Systems Conference.

October 12, 2022
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