Business Management : Financial Management

Financial Management: “The process for and the analysis of making financial decisions in the business context.” (Cornett, Adair, & Nofsinger, 2016, p. 5).

The financial manager establishes goals that will help to reach the organizations objectives, then creates steps in which they will use to achieve those goals.

As financial manager, my role is a complex one covering many different areas of my clients finances. My role requires me to have a full understanding of the finances and how my company is ran. I am responsible for managing the budget and allocating funds amongst the different departments in relevance to importance, in order to keep the company running successfully. Choosing to invest in a company is a huge decision , requiring a rigorous amount of research. This research is done in order to determine whether the companies are a good fit for each other. The amount of research conducted can make the difference between my investor increasing their profit and losing money.

Define the scope of financial management. What role should the financial manager play in a

Even though financial management "is a broader concept than accounting", the idea of financial management is more than just accounting for where money is spent, it is based on the analyzation of organization's economic

According to Ross, Westfield, Jaffe & Jordan (2011) financial officers are responsible for making good financial decisions for the stockholders of the firm. Specifically, managers hold the responsibility of ensuring that the money invested in the company is being managed appropriately in order to maximize the company’s overall return on their investment. As a result, financial managers are expected to be trustworthy and make ethical designs in order uphold the firm’s reputation. Unfortunately, there has been numerous examples of financial mangers that have failed to make the right decisions for their organizations, either as a result of lack of knowledge of industry standards or lack of trustworthiness. Most often the reasons for unethical behavior by mangers is due to desire for personal gain or company profit.

Financial Manager main responsibility used to be monitoring a company’s finances; they also help develop strategies or plans for the long-term financial goals of their business.

1. Define the terms finance and financial management, and identify the major sub-areas of finance. Finance is the way in which money is used and handled; especially, the way in which large amounts of money are used and handled by governments and companies (Merriam-Webster, 2014). Financial Management is the planning, directing, monitoring, organizing, and controlling of the monetary resources of an organization (Businessdictionary, 2014). The major sub-areas of finance are: investments—involves methods and techniques for making decisions about what kinds of securities to own; financial management—deals with a firm’s decisions in acquiring and using the cash that is received from investors or from

Besides that, my organization might have to be accountable to our shareholders as well as the media too, since we are a local listed company. Today, you might use the assistance of various financial manager in addition to financial risk management software before you intend to make an investment. In case you are seriously regarding a career in financial consulting, you have to know the clients you will be serving.

– To develop robust foundations in financial management theory and practice – To understand the role of financial managers in firms – To apply tools to analyse firm investment and capital budgeting decisions – To have an appreciation of financial

The Roles of a Financial Manager are many, but their primary goal is to warrant growth of the proprietor’s wealth and to ensure maximum profit of the company. When a financial manager achieves his or her personal goals of a company, they too will be successful, (Moyer, et al, 2008).

The term finance originated in France. The English society adapted the word in the eighteenth century to mean administration of money. It has become a permanent fixture of English dictionary since then. Now it more than just a word and has developed into an important academic discipline.

In financial management there is effective and efficient management of money which accomplish the goals of organization. It is the specialized functions directly associated with the top management. The significance of this function is not only seen in the 'Line' but also in the capacity of 'Staff' in overall administration of a company. The financial management is defined differently in different fields.

Financial management deals with analysis, interpretation and evaluation of all financial records of the business. It also deals with the planning, monitoring and controlling of a business’ financial resources.

Financial Management as an academic discipline has undergone fundamental changes as regard its scope and coverage. In the earlier years, it was treated synonymously with the raising of funds. In the later years, its broader scope, included in addition to procurement of funds, efficient use of resources.