Importance of public (fiscal) administration for managers

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Importance of public (fiscal) administration for managers
The role or position of a manager comes with a variety of responsibilities in order to ensure that organizations and institutions run smoothly and successfully as required. As a manager, there are a number of things that can be helpful in helping people to become managers. Public or fiscal administration is among the factors that are essential in developing good managers for any entity either privately or publicly owned. Among the key responsibilities that help people in management roles include budgeting, public revenue management, public revenue expenditure, and the knowledge of block grants and bonding and debt management and budget interactions among government agencies.
Budgeting is essential for all companies and the ability to tackle this task effectively shapes people into becoming managers in organizations. The capability of budgeting effectively is an essential part of a successful organization. Budgets are helpful in establishing performance standards, motivating employees and board members, and offering a technique of measuring results. Achieving the mission of the organization is a key objective and this is made possible by budgeting. The process of budgeting starts with zero-based budgeting that is needed or suggested at least in every two years of business operation. Beginning at zero and establishing the needs of each program and department can offer a more precise budget. In addition, budgets are conservative and should allow for flexibility. Incorporating board members, accounting staff, fundraising staff, and other division heads is crucial in this process as it allows for a concentrated view of the mission of the organization while taking into account the projected resources and revenues to achieve these needs. Budgeting also plays a significant role in the process of planning. The ability to tackle this is helpful for city managers.
The management of public revenues and expenditure is a key role in shaping people into managerial roles. Financial management also is important in ensuring that debt is managed in order for the company not to be harmed. Financial management is a unique area of business management. In this case, financial managers have an essential role in the overall management of business. This assists in rational or prudent utilization of capital resources. This is because it facilitates appropriate allocation and use of funds. It aids in choice of the source of capital. This is done through establishing the debt equity ratio and setting up an appropriate capital system or structure for the corporate. It is also crucial for goal and objective achievement because it ensures profit or wealth maximization, which are essential goals of an organization. The main objective of public financial management can be classified into two broad functional classes. These are the recurring and non-recurring finance roles or functions. Carrying out the regular functions related to finance including financial planning, assessment of funds required, identification and sourcing of capital, the allocation and utilization of funds aids in attaining the primary goal of wealth or profit maximization.
On the other hand, performing the non-recurring roles such as the financial readjustment in cases related to liquidity, preparation of financial plan, and the valuation of an entity have significant financial implications. The ability to perform this can be helpful for city managers. This is also the case with having knowledge on block grants and bonding. Last but not least budget interactions among government agencies, is crucial if city managers wish to be successful. Through such interactions, a person is able to know how government agencies utilize their funds. This adds skills and knowledge to the city manager.