Student; egamberdiyev akmaljon bda-98 Teacher; nuriddin javliyev plan
1. What is the financial management
3. Main types of financial management
4.Financial management in banks
2, Functions of financial management
Meaning of Financial Management Meaning of Financial Management - Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise.
1. Capital Estimation - 1. Capital Estimation
- A finance manager has to estimate the capital required for the company. This will include expected costs, profits, future programs, and expected losses, if any. The estimate had to be made in such a way that the earning capability of the company increases steadily.
- 2. Deciding Capital Structure
- Once the estimate has been made, it is now time to form the capital structure. This includes debt analysis in both the short and long term and is dependent on the capital the firm owns and raised external fundings(if any).
- 3. Choice of Funds
- When significant funds are required, the capital structure needs to be expanded. The organization can take options like Bank Loans and Issues of Share and Debentures. It is essential to evaluate these options considering the interest rates, returns and risk involved. A pro and con list of each of these options will be helpful.
- 4. Investments
- The organization cannot just sit on funds or profits. Growing money is more important than saving money for sustainable growth. The finance Manager needs to allocate funds into profitable ventures or make investments that give reasonable returns with safety on the investment made.
- 5. Profit Allocation
- Profit allocation plays an important role. Once the business makes profits, it is essential to allot them properly. Various factors to be considered here are – employee bonuses, dividends, returns to investors, funds for future growth, and other basic cashflows. It is essential to plan and allocate profits to achieve business objectives.
- 6. Money Management
- The team is also responsible for money or cash management. Cash is required for various purposes such as salaries, electricity and water bills, real estate bills, buying raw materials, storage costs, etc.
- 7. Financial controls
- The finance manager has to plan and utilize the funds and needs to have complete control over the finances considering both short term and long term. This can be achieved using risk analysis and mitigation tools, financial forecasting, ratio analysis, cost reduction, and profit control.
Do'stlaringiz bilan baham: |
