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Managerial activities related to procurement and utilization of fund for business purpose. Its sub areas are as follows
Financial accounting: It relates to record keeping of various financial transactions their classification and preparation of financial statements to show the financial position of the organization.
Management accounting: It deals with analysis and interpretation of financial record so that management can take certain decisions on investment plans, return to investors and dividend policy
Taxation: This area deals with various direct and indirect taxes which organization has to pay.
Costing: Costing deals with recording of costs, their classification, analysis and cost control
THE FIVE BASIC FUNCTION OF FINANCIAL MANAGMENT
1) raising capital to support company operations and investments
2) selecting those projects based on risk and expected return that are the best use of a company's resources.
3) management of company cash flow and balancing the ratio of debt and equity financing to maximize company value
4) developing a company governance structure to encourage ethical behavior and actions that serve the best interests of its stockholders
5) management of risk exposure to maintain optimum risk-return trade-off that maximizes shareholder value.
Financial management , used to control and manage corporate assets. To get the best ROI
Finance management is a field within economics that deals with the allocation of assets and liabilities over time under conditions of certainty and uncertainty. Finance can also be defined as the science of money management. A key point in finance is the time value of money, which states that one unit of currency today is worth more than one unit of currency tomorrow. Finance aims to price assets based on their risk level and their expected rate of return. Finance can be broken into three different sub-categories
The concept of financial management is the activity, which handles the planning, organization and follow-up of movements in and out of the current and anticipated funds to and from the facility process so that the flow of money into the facility larger than the money flowing outside the facility
• analysis of investment opportunities .
• clarify the financial implications of the decisions .
• To assist in the long -term financial planning and medium-term and short-term .
FUNCTIONAL AREAS OF FINANCIAL MANAGEMENT
Capital Budgeting -- Working capital Management -- Dividend Policies -- Acquisitions and Mergers -- Corporate Taxation -- Determining financial needs -- Determining sources of Funds -- Financial analysis -- Optimal capital structure -- Cost volume profit analysis -- Profit planning and control -- Fixed Assets Management -- Project planning and Evaluation --
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