The finance function is one of the major components of a business organization, involving a permanent and continuous process of the business concern. Money is an interrelated one Functions which are personal functions, marketing functions, production functions, and Research and development activities of the business concern. Professional financial management of an organization is very beneficial. They are very good at creating financial plans and then implementing those plans and controlling the flow and outflow of financial resources according to the plan which ultimately maximizes the assets of the shareholders and the value of the company. Financial managers have to make three essential decisions for the company which are financing decisions, investment decisions, and dividend decisions for a specific year.
Must have complete knowledge of Accounting, Finance, Economics and so on His position on solving various management problems is highly critical and analytical Supply. A person who conducts financial activities can be called a money manager. The finance manager performs the following main functions:
Forecasting Financial Requirements: A financial manager needs to estimate the financial needs of a business. How much does it cost to acquire different assets? This amount will be required to meet the demand for fixed asset purchases and working capital. This is the primary job of a finance manager. He should calculate, how much money is needed to acquire fixed assets and forecast the amount needed to meet The need for future work capital.
Acquiring Necessary Capital: After financial planning, the next step is to raise funds. There are many sources of funding available. These sources can be stocks, debentures, financial institutions, commercial banks, etc. After determining the financial requirements, the money manager should focus on how the money is collected and where it can be found. It is also highly critical in nature.
Investment Decision: Funds should be used in the best possible way. The cost and income should be compared. Channels that give higher returns should be given priority. Capital budgeting strategies can be helpful in selecting a project. When investing capital, money managers must focus on the principles of security, liquidity, and profitability.
Cash Management: In today’s competitive industrial world a number of mergers and acquisitions have taken place. Assist management in evaluating a finance manager. For this purpose, he needs to understand the different methods of valuing shares and other assets in order to get the right value. Because at present cash management plays a major role in the field of finance Proper cash management is not only essential for the efficient use of cash It also helps to fill the short-term liquidity position of anxiety.
Interrelation with Other Departments: Finance managers have various functional departments such as marketing, Production, individuals, systems, research, development, etc. should be the money manager Not only sound education but alertness and dedication are most required in Other areas. He must maintain a good relationship with all work Sections of the business organization. A finance manager needs to determine the liquidity requirements and then arrange the liquid resources in such a way that there is no shortage of funds.
