Financial management - it tricks, tools and techniques that are used in the enterprise in order to improve profitability and to minimize the risks of insolvency.It has one main goal - to get the maximum possible benefit from the activities of the organization, acting on behalf of owners.
main functions of financial management:
1) planning of internal finance;
2) analysis and diagnostics of the financial condition of the organization;
3) investment management;
4) regulation of financial risks;
5) other.
Financial management - a complex process, which includes procedure, different levels of responsibility and complexity.On the first level, make financial decisions on the long-term development of the enterprise activity, attracted funding sources to carry out certain financial policies.These tasks are the most complex and demanding.Their decisions are engaged senior executives and delegation is only partial.
On the second level are carried out various financial calculations, drawn up financial documents, reports are compiled.It is a simple problem that can be solved employees of financial, accounting, economic services, and some of them are entrusted to departments.
Financial Management - is the fulfillment of the strategic objectives of the enterprise with the implementation of appropriate financial policies.At the moment, the most important task of the organization is presented to maximize the price of the company.Considering the theoretical foundations of financial management should be more focus on the financial policy of the company.It includes the following elements:
1) maintaining accounting policies;
2) implementation of the credit policy;
3) the establishment of methods of regulation costs, classification of expenditure and the calculation of the proportion of fixed costs in the cost;
4) of tax policy and tax planning;
5) The implementation of the investment policy.
financial system is complex, dynamic and open.Her difficulty is that its constituent elements form a non-uniform with the presence of the varying relationships between them.Dynamism is due to its constant development and change in the value of financial resources, fluctuating supply and demand for capital.But due to the financial system of information exchange with the external environment, it can be called open.
International Financial Management involves performing significant financial statements, where the responsibility for the execution rests with the management of the enterprise.View the results, profit and loss, changes in financial settlements of the enterprise.The information that must be published, are audited.
Thus, financial management - the art of movement to lead the finance and control the financial relationships that occur between enterprises in the process of movement of these funds.It produces objective management of financial resources, and influence them through a variety of instruments and methods of the financial mechanism to achieve this goal.
