What is financial management?
Financial management is the effective and efficient use of funds in such a way as to achieve the objectives of the organization. It involves planning, directing, monitoring, organizing, and
controlling monetary resources. Financial management mainly concerns itself with creating and maintaining wealth in a rational manner.
The objective of financial management is always to maximize the shareholders’ wealth by;
- Ensuring there is an adequate supply of funds.
- Ensuring that decent returns are provided to all shareholders according to expectations.
- Proper application of financial management, thus giving an organization more chances of making decisions regarding funds investment.
- Creating a sound capital structure and thus maintaining a balance between debt and equity.
For any firm, financial management involves undertaking a decision making process where decisions that need to be taken can be regarding financing, investments, or dividends.
These are decisions made about the capital and investment in fixed assets.
These are decisions characterized by financial rising with the help of loans or funding. The rate of interest and time duration for the amount raised is also crucial for these decisions
These are the decisions that financial managers have to take regarding dividend policies. It falls under the concept of profit distribution.
Financial management functions
Your financial management assignment may require you to explain any of the financial management functions. In such instances, our financial management homework help services are just a click away to help you understand these functions. The primary functions are;
- Estimation of capital prerequisites. Any enterprise ought not to run short of funding to deal with costs of operation and procurement of assets. Financial managers should make a correct estimation of the capital.
- Determination of capital composition. It involves debt-equity analysis, both short term, and long term. Get in touch with our experts for more information on this.
- Selection of fund sources. For the acquirement of extra funds, organizations may take loans, issue shares, and may take public bonds. The source settled on relies upon the cons and pros of each method.
- Funds Investment. An essential financial decision that chooses the security of the investment and the greatest come back to the investors. Financial managers need to make appropriate analyses and investigations before making the funds investment choices.
- Surplus Disposal. When an organization makes benefits and has an overflow, it needs to either pay it out to the shareholders as dividends or hold it for future development designs.
- Cash Management. There are loads of operational costs of an organization, for example, power charge, pay rates, charges, and some more. It is necessary to oversee money to guarantee the best possible functioning of the organization.
Financial management homework help.
When pursuing financial management, some of the key concepts you will come across and that are essential in helping a company maximize its profile and minimize its expenses include;
- Tax planning
- Cash flow management
- Debt service
To thoroughly understand these concepts, get our financial management assignment help services that are available 24/7 and provided at a pocket-friendly rate. Our expert writers provide reliable financial management homework help with a high-quality guarantee.