M3: Cost Management (Canvas)

Finance

refers to the management of large amounts of money, particularly by governments, organizations, and large companies.

Financial Accounting

is the process of recording, classifying, and summarizing financial transactions involving the purchase and sale of products, services, labor, and other business activities.

Financial Management

is the efficient use, planning, acquisition, and control of a company's financial resources.

Maximize Company Value

Increase the overall value of the business through sound financial decisions and efficient resource allocation.

Maximize Shareholders Wealth

Generate sustainable profits and increase returns for investors and company owners.

Social Responsibility & Ethics

Conduct business responsibly by complying with laws, protecting the environment, and maintaining ethical business practices.

Forecasting and Planning

Preparing budgets, forecasting revenues and expenses, and planning future financial needs.

Investment & Financing Decisions

Determining where to invest company resources and how projects should be financed.

Coordinating and Controlling

Monitoring financial activities to ensure resources are used efficiently and within budget.

Trading in Financial Markets

Managing investments, securities, and other financial transactions that affect company performance.

Risk Management

Identifying, evaluating, and minimizing financial risks that may affect project or company performance.

Cash Method

Is the simplest accounting method. Revenue is recognized only when payment is received from the owner, while expenses are recognized only when bills are paid.

Accrual Method

revenues are recognized when the company earns the right to receive payment, while expenses are recognized when the company becomes obligated to pay them, regardless of when cash is actually received or paid.

Percentage of Completion Method

This method recognizes project revenue, expenses, and estimated profits throughout the duration of the project based on the percentage of work completed.

Completed Contract Method

Under this method, all project revenues and expenses are recognized only after the construction project has been substantially completed.

Financial managers

ensure that construction projects remain financially healthy by monitoring project costs, preparing financial reports, and identifying potential financial risks.