The efficient management of the resources (financial resources in particular) in order to achieve your aim is known as Financial Management.In simple words the purpose of financial management is to plan, organize, control and direct the resource allocation so that the organization may achieve the goals or objectives.One of the unique features of the financial management is that it is done by the higher authorities in any organization.To be more exact,the top brass are always responsible for the management of financial resources or Financial Management.Financial management concerns the actual implementation of the approved expenditure budget.
FUNCTIONS OF FINANCIAL MANAGEMENT
Financial management is one of the traditional functional areas of management, found in any organization in order to analyze the decisions and actions related to the financial means necessary to the activity of the organization. Thus, the financial function integrates all tasks related to the achievement, use and control of financial resources.
That is, the financial function integrates:
- Determining the need for financial resources (addressing needs, description of available resources, forecast resource calculation released and external financing needs);
- Achieving funding by most beneficial way (taking into account costs, deadlines, and other contractual conditions, fiscal conditions and financial structure of the company);
- The judicious use of financial resources, including cash surpluses (so you get a balanced financial structure and adequate levels of efficiency and profitability);
- Financial analysis (including good harvest, while the study of information so as to obtain certain answers on the financial situation of the company);
- The analysis regarding the economic and financial viability of investments.
PURPOSE OF FINANCIAL MANAGEMENT
All the effort developed by the financial management should tend towards a goal say maximizing the value of the company and corresponding to the purpose of the shareholders, investors or owners in order to increase their own wealth.
The study of finance is a part of the economy that cares for emphasis and to implement the theoretical economic concepts.
The corporate finance of the knowledge of the macro- and macroeconomic variables. The macroeconomic variables provide the management of relations with the structure of the banking system, national accounts, internal and external economic policies. While macroeconomic variables, establish those relationships that provide insight into the operation of enterprises, its functional nature, the origin of its capital, its structure of origin or legal nature, strategies on reducing costs, risk management the environment, strategic planning, knowledge management or human capital, management of physical and financial resources, the characteristics of products and services, pricing and regulation, promotion strategies and distribution channels .
In general, we can say that the financial activity comprises three specific functions as follows:
- Preparation and analysis of financial information.
- Determination of the structure of the assets of the company.
- The study of the sources of financing of the business or financial structure.
The financial function involves managing the following responsibilities:
- The production, management and adequate flow of accounting and financial information.
The efficient management of working capital.
- The selection and evaluation of long-term investments, especially in relation to fixed assets.
The promotion and management of funds required by the company.
- Active participation of the financial manager in the normal development of the company.
- The administrative management of the areas of the company involved in the finance function (planning, organization, management and control) on areas like treasury, marketing and sales, financial management, administrative management, production management, management human talent.
Financial management help is our one of the best or low cost financial management service that can inform the people why the financial management is necessary in an organization. By taking the consultation from our services one can know how to allocate resources in an organization so that the organization can achieve objectives and goals efficiently and effectively. International financial management is the overseeing of the finance in the international business environment or in the multinational companies.