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Learning at Coventry University

Coventry University believes that a good student experience is central to learning at a world-class standard. To reflect our success we were recently awarded the title of University of the …

Continue learning with Coventry University

Thank you for joining us. We hope that you enjoyed the learning experience. This course is part of the online MSc Construction Project and Cost Management offered by Coventry University …

Summary

Congratulations on completing this course, An Introduction to Financial Management in Construction. At the beginning of the course, we explored the idea of why construction companies are so closely linked …

Ethical rules

Ethical rules can be considered as moral code or principles expected to be adopted in the preparation of accounts. There are four rules, as described below. Prudence Prudence rules that …

Boundary rules

In small firms, financial information can be obtained from the business owner. In a large organisation, this is often impractical, so a more formal way of reporting back to the …

Measurement rules

Measurement rules decide how data ought to be recorded. There are six vital rules to consider. Money measurement Money measurement requests that accounting transactions should only be recorded if they …

How does construction accounting differ?

In Week 1, we took a broad view of business accounting, but let’s delve deeper into what this really means for construction projects. Accounting is a vital discipline that is …

Minimising risk of insolvency

Looking back at Week 1, think about the question we asked: Why are construction companies often linked with insolvency? A business becomes insolvent when it is unable to pay its …

Summary and next steps

Congratulations on completing this week and thank you for joining us. We hope you have enjoyed this look at the introduction to financial management in construction. This week we have: …

Key terms in accounting

Some of the terms used in accounting may be unfamiliar. In this step, we’ll look at some definitions. Defining key terms Assets are regarded as being something that will result …

Objectives overview

The management of finance is concerned with the procurement and utilisation of funds. Effective procurement and efficient use of funds can result in proper utilisation of finance by the business. …

Profit maximisation

Profit maximisation is a process business firms undergo to ensure the best output and price levels are achieved in order to maximise its returns. Influential factors such as sale price, …

What is financial management?

As you may have noticed from the previous task, financial management has diverse implications for companies and individuals. Financial management is a method for planning and organising the activities of …

Analysing a financial budget

As a starting point, let’s look at a simple example to understand the concept of financial management and risk. Imagine a family and how they might manage their income. Mark …