Financial Management

Financial Management Introduction Financial management can be defined as the management of the financial situation of the organization or work for the achievement of financial targets. And when entering into business organizations, such as most of the basic objectives of financial management to crystallize in the following: - Find a wealth of work. - The provision of cash. - To provide an adequate return of investment. Taking into account the risks that may be exposed to work and the resources invested. There are three essential elements of the process of financial management: 1 - Financial Planning: Department needs to ensure that the necessary funding becomes available at the time of the need to meet the needs of work. In the short term may be needed to finance investment in equipment and stored goods and the payment of salaries of workers and the financing of credit sales. In the medium term and long term there may be a need to finance because of the important additions to the productive capacity of the work or to acquire something. 2 - Financial control: Financial control is an important activity and of the results of important work to assist in ensuring that the work to achieve its objectives. And control the financial means to respond to questions such as: - Is the use of the assets efficiently. - Are the assets of the work safe. - Does the Department is working to achieve the best benefit of shareholders and in accordance with the rules of work. 3 - the financial decision-making: Relating to key aspects of financial decision-making, financing and investing the proceeds of the shares. The investment must be financed in some way - despite the existence of financing alternatives can be taken into account. For example, it is possible to increase funding through the sale of new shares or borrowing from banks or credit financiers. The decision to stop core funding to either the profits of the work in this case should be retained rather than distributed to shareholders through dividends. If the profits are very high therefore the work could be deprived of funding and re-invest in increasing revenue and profits as well.