8 pages
Word Count
2464 words
Alaska Christian College
Course Code

The Hashemite University

January 10, 2021
13th International Conference of ASECU Social and Economic Challenges in Europe 2016-2020
Nafi Pollozhani1
Nuhi Sela2
Businesses in order to develop their activities, except fixed assets (property, land, equipment,
etc), need raw materials, finished goods and labor, as to conclude the process of production and
making ready products for sale.
Management of raw materials, finished goods, buyers demand, cash, etc., on the one hand,
and short-term financial liabilities relates to short-term financial management company. Often
this process is also known as working capital management. As part of our topic treatment will be
considered the short - term funding sources, the financial operational management, cash
budgeting and short - term financing plan. To illustrate theoretical concepts will be given an
example at the end of the paper.
Short-term planning and financial decisions are of a particular importance for the company
and its vitality, as well as for the new ones (start-up) and for those large and well consolidated.
Even large companies with positive income statements have bankrupted, simply because they
have been unable to carry out short-term obligations.
Keywords: short-term sources, working capital, cash budgeting, operating cycle, decision
making, credit
Jel Classification: G17, P40, G32
1. Introduction
Financial management as a process has to do with the planning and decision making about
important areas of the company and dealing with the decision for the usage of money as well as
finding the funding sources.
Funding sources, forms and financial manners are some of the issues that the financial
manager has to deal with them during his activity.
The short-term financial decisions include current asset decisions and current liabilities, or
which have a lower maturity than a year.
The financial manager which is responsible for the short-term financial decisions, in the
future should not go far. It must deal with the financial and operational activities related to the
maximum for the next 12 months.
Unlike short-term financial decisions, long-term financial decisions deal with the financial
and investment activities over 1 year or more and have to do with long-term assets and liabilities,
1DSc, State University of Tetovo, email: [email protected]o.com
2Ph.D, State University of Tetovo
13th International Conference of ASECU Social and Economic Challenges in Europe 2016-2020
as well as by nature they are not easily changed and put the company in a particular direction for
several years.3