UNDERSTANDING FINANCIAL MANAGEMENT FUNCTION

FINANCIAL MANAGEMENT

Financial management is an activity of planning , budgeting , inspection , management , control , search and storage of funds owned by an organization or company .

A finance manager in a company must know how to manage all the elements and financial terms , this must be done because it is a financial one important function in achieving corporate goals .

FINANCIAL MANAGEMENT ACTIVITIES

3 relating to financial management activities , namely :

1. Activities use the funds , the activity to invest in various assets .
2. Fundraising activities , ie activities to obtain funding , either from internal cash resources and external funding sources .
3. Asset management activities , the following is obtained and allocated funds in the form of assets , funds should be managed as efficiently as possible .

FINANCIAL MANAGEMENT FUNCTION

Here is a brief description of the function of Financial Management :

• Financial Planning , income and expenditure to make plans and other activities for a certain period .
• Financial budgeting , follow-up of financial planning to make a detailed expenditure and income .
• Financial management , use of corporate funds to maximize existing funds in various ways .
• Financial searching , finding and exploiting the resources available to the operational activities of the company .
• Financial storage , as well as the company raise funds to save and secure the funds.
• Financial control , evaluation and improvement of finances and financial systems in the enterprise Audit , internal audit of the financial companies that exist to avoid deviations .
• Financial reporting , providing information about the financial condition of the company as well as an evaluation

When associated with these objectives , the financial manager functions include the following :

• Exercise supervision over cost
• Set pricing policy
• Predict future earnings
• Measuring or exploring the working capital

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