In order to lead organisational change, strategic leaders need to understand not only how to manage people, but also to manage finance and accounting as effective financial management underpins business success. Finance provides the funds for a business’ operations and ensures its stability and continuity. Additionally, financial management generates information that informs the decision making that is required to ensure businesses meet their objectives.
This unit explores how to analyse the financial health of a business in respect of its profitability and stability. All businesses need to produce accounts in order to have an insight into their financial position. Balance sheets provide information on the sources of finance and how they are then used within the business. Income statements measure the profit position of businesses. In addition, managers need financial information to support decision making.

Consideration will be given to management accounting and how it is used in the decision making process. It helps answer questions about what price to charge for a product or service so it is not sold at a loss, whether to make of buy a product and which amongst alternative capital investments should be chosen. Managing finance provides the techniques that help measure whether a business is sustainable into the future and whether it is meeting its objectives.