Translated from the English term financial management means managing the finances of the organization.Financial management is a whole science about how to make better use of their own and borrowed funds from outside, how to get the maximum profit with minimal risk, how to make the company solvent, highly liquid, competitive and financially attractive.On how exactly fulfilled the aims and objectives of financial management depends largely on the current state of the company and its future prospects.
Goals and objectives of financial management are closely intertwined.The fundamental purpose of financial management within the scope of a particular company is to provide the most rapid increase in the welfare of the owners and founders of the organization, both in the current and future period.
To achieve the main goal is necessary to implement the following tasks:
- based on the development strategy of a particular company, to provide it with the necessary financial sources;
- in the process of development of the company to ensure its financial equilibrium and financial stability;
- to maximize profits with minimal financial risk;
- for normal functioning of the settlement policy of the enterprise to optimize the cash flow;
- in the context of the priority directions of activity of the company to make effective use of currency and other financial resources.As you can see, the goals and objectives of financial management are binding and largely determine the success of the organization.
Financial management in the enterprise to realize the inherent functions for him.The functions and tasks of financial management have a strong relationship, because of the problem of financial management largely determine its function.Among the main functions of financial management include:
- financial planning at the enterprise - is planning absolutely all income and expenditure cash equivalents for the sustainable development of a particular company.This function depends on the size and scale of the company give a different meaning;
- forecasting - is the development and updating of changes in the financial condition of the company as a whole and its various divisions.Forecasting can be carried out with the help of expert assessment by transferring the last of the enterprise in the future, and direct the planning and forecasting of future developments;
- regulation - is the impact on the management, during which reach the state of the financial stability and sustainability of the enterprise in the case of some deviations from the schedule.It includes all of the weaving activities to eliminate any deviations from the planned schedules, well planned tasks and set out standards and norms;
- control function is designed to reflect the state of trafficking enterprise resources and provide control over management decisions;
- organizational function is designed to provide a systematic approach to the organization of the cash flows.This function is reduced to the unity of the whole team, which implements the financial program.
functions, goals and objectives of financial management largely determine its essence, at which the management - is a system of methods, actions and principles for developing and implementing clear management decisions that are directly related to the process of formation, storage, distribution and use of fundsenterprise.
