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What are the functions of Financial Management?

Financial Management is important for the development, management and controlling of the entire organization. Let’s learn how Financial Management functions within a organization. Read more at: https://managementpaper.com/sample-paper.php

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What are the functions of Financial Management?

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  1. Functions of Financial Management

  2. Introduction: Planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise are called Financial Management.

  3. Learn the Functions of Financial Management…

  4. Estimation of capital requirements: A finance manager is behind the estimation with regards to capital requirements of the company. 

  5. 2. Deciding of capital composition: After the estimation has been ready, the capital structure must be determined.

  6. 3. Choice of sources of funds: • A company has many choices like- • Shares and debentures issues • Loans are taken from banks and financial institutions • Public deposits are drawn in form of bonds.

  7. 4. Investment of funds: Allocation of funds into profitable ventures is decided by the finance manager. Therefore safety is maintained on investment and standard return is made feasible.

  8. 5. Disposal of surplus: • A finance manager makes the net profits decision. This is done in two ways: • Bonus declaration • Preserved profits 

  9. Conclusion: Financial management is responsible for co­ordinating diverse activities in the business. Thus, financial management plays the pivotal part in the success of any firm or organization.

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