Financial management in Czech enterprises depending on their size

Abstract

This text aims to present the latest knowledge of enterprise practice within the financial management sphere. This text contains following information: who in the company serves as the financial manager, what is the most common way of financing, what is the most frequent method of investment evaluation, what financial plans the enterprises prepare and what information is used by enterprises in accounting statements. The research has shown that there are two different groups. The first group includes micro and small companies that are financially managed by their owner, or their executive manager. The second group includes middle and large companies having their own financial manager. In addition it was found that the foreign capital belongs to the most frequently used form of financing only for small companies. The research has also found that a great portion of companies does not use any method of investment evaluation. The payback period and net current value belong among the most frequently used methods. It was also found that short-term financial plan is the most often used one. As for the balance informational function, all companies, regardless their size, use this statement for their assets management, on the contrary the profit and loss statement is used as the most often information for operational costs management across companies of all sizes. The presented research has confirmed several statements that could be expected nevertheless it also found new information or detailed the current one.