Function Of Finance Officer

Function Of Finance Officer – Source of Money: Three Ways to Get Money: Selling Work / Ideas (Work} Selling Capital (Investing) Renting Capital (Loans to get money) Cash – Cash Flow: Cash leaving you (US) Housing, Transportation , entertainment, equipment.

4 Excess income vs. insufficient income is greater than expenses = the remaining budget we need (situation of need). We invest less than it costs = budget deficit we don’t want (undesirable situation). Reduce or increase income (find job 2).

Function Of Finance Officer

5 Finance Finance can be defined as the area of ​​money when it is needed. Financing includes raising, securing, managing all money, capital or money of any kind to be used in connection with a business. The term “financial business” has many meanings. This refers to the cost of doing business. The word “business” can be divided into three categories: trade, industry and services. It is the process of collecting, securing and managing all funds to be used in connection with the business.

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Doing business. Survival. Expanding, modernizing, diversifying. To purchase assets: Material- tangible, ie machinery, furniture. Managing day-to-day business operations.

Two words: finance and management. Money is a way to earn and spend. How to find and use. Management: Planning, Organizing, Directing and Controlling (PODC).

8 Planning, organization, management and control of financial management Raising funds, investing funds and allocating funds to achieve the organization’s goals. OR Financial Planning Planning, organizing, directing and controlling the purchase, use and utilization of money to achieve personal, organizational and social goals. (Money: where to take from? Where to invest? why and how? How to use profits? to realize personal, organizational and social goals).

9 Financial Management Financial management is related to the financial activities of the PODC company. It is a study of problems related to the use and acquisition of funds. Financial management is one of the functional areas of management. Financial management is key to running a successful business. It affects every industry, from managing cash flow and tracking business performance to developing plans that ensure business owners can make the most of opportunities.

What Does A Chief Financial Officer (cfo) Do?

Financial management is an important part of all management, not just staffing related to raising money. The financial manager occupies a central position in any business firm. Financial management includes the performance of all management functions. Plan, coordinate, direct and control the use of financial resources to ensure full operational efficiency and build good relationships with investors, suppliers, employees and members. Coordination of activities of different business departments. Control using appropriate measures to maintain financial discipline in the use of income.

Financial management is very important because it helps in making decisions to increase the value of the company. Effective financial management: financial planning and clear goal setting Selection of sources of funds / Acquisition of funds. Effective use of resources Decision making Brief allocation, financial planning, obtaining capital, efficient use of funds, financial decision, improving profitability, increasing enterprise value, promoting retention.

There are two schools of thought Ancient: Profit Maximization Modern: Profit Maximization The term “profit maximization” refers to the generation of a large amount of profit over a period of time. (Profit Maximization) Wealth maximization refers to any effort to maximize the present value (i.e., wealth) of an alternative course of action, which is simply the difference between the present value of its benefits and the amount of investment required. to get the following benefits. (High market value of common stock)

Traditional thinkers believe that profit is the most appropriate yardstick for measuring business performance. They believe that a company should only take those actions that maximize profits. The main purpose of business is to make a profit; therefore, the goal of financial management is also to increase profits. If the profit is given an insignificant value, several problems can arise, for example, It does not take into account the payback period process. It ignores human considerations for employees, customers and others.

Key Finance And Accounting Personnel

Today, most large companies experience a gap between ownership and management, with the company heavily dependent on debt and leveraged capital, with only a small portion financed by owners’ equity. However, profit maximization seems a narrow goal. Considering the above, modern thinkers consider economic growth as an important goal of financial management. This is also called value maximization or net worth maximization.

In economic development, a business firm increases its value in the market, which means that a business decision should try to increase the present value of the economic profit of the firm. The financial manager is responsible for ensuring that the shareholders get a good return on the share (EPS earnings per share). However, the value of the shares should increase in the stock market. The goal of wealth maximization is usually based on the interests of different groups such as owners, employees, etc.

Other objectives of financial management include creating reserves for growth and expansion, providing good returns to shareholders and ensuring effective and efficient use and utilization of funds.

Financial management applies to any type of organization, size, type or quality. Every organization tries to use its resources in the best and most efficient way. It is the main role. It helps in senior management decisions. It is applicable to all types of concerns. This requires financial planning, control and follow-up. Its role is different from that of accounting It is an important part of business management. It is related to various disciplines such as economics, accounting, law, information technology, mathematics and others.

How To Structure A Modern Finance Department

Financial management is an important part of all management. Financial considerations are involved in all business decisions. Equipment purchase, maintenance, removal or replacement, employee compensation, various capital sources and costs, production, marketing, financing and recruitment, almost all decisions in this matter involve money. Financial management is a subsystem of the institutional system with other subsystems such as educational activities, research wing, etc., the financial system subsystem should be well coordinated with other and other subsystems that are closely related to the funds. . – system.

Financial management involves a trade-off between risk and return. Investment decisions involve choosing the types of assets that generate returns along with risk. Often, a high risk return can be a high reward and vice versa. Financial management is an issue that concerns everyone. Financial activities, that is, investment, raising money, distribution of profits, are carried out in all enterprises – whether commercial or non-commercial, large or small, property or corporate enterprises.

The main focus of financial management is the value of the company. Financial decisions are aimed at increasing / expanding / improving the value of the institution. Financial management affects the survival, growth and sustainability of an organization Financial management of an organization is affected by the legal and economic environment. Legal obligations to use a certain type of money or invest in a certain activity, etc. influence the organization’s financial decisions. Therefore, financial management is highly influenced/pressured by the environment.

Financial indicators are influenced by key business processes. In places with technology-oriented organizations, R&D activities are more controlled, but in a university or college, different courses are offered and research, etc., is more important.

Wcf Cfo Job Description By Wichita Comm Fdn

The role of financial management refers to decisions related to a business firm (organization). The main decisions that are made in business are: Investment decision. Financing options, including dividend options.

The investment decision is related to determining the amount of assets to be invested in the company, the composition of these assets and the seriousness of the company’s business risk, as perceived by investors. It is the most important financial decision. Since money is associated with costs and is available in limited quantities, its proper use is essential to achieving the goal of increasing wealth.

24 Investment decision Investment decision is mainly related to: working capital management, capital budgeting decision, consolidation management, reorganization, disinvestment, etc., purchase or lease decision, securities analysis and portfolio management (portfolio management refers to asset management bonds , stocks, cash, mutual funds, etc. for higher returns). Find out how much it costs. How much money do I have? How much do I want? Find out where your money comes from. (Debt Funds or Shareholder Funds) Comparison of Different Sources. (Risk and cost). Investments: where can you invest money?

25 Investment Decisions Investment decisions can be classified into two broad categories; (i) long term investment option and (ii) short term investment option. Long-term investment decision is called capital budgeting and short-term investment decision is called working capital management. Capital budgeting is the process of making capital investment decisions. These expenses, the benefits of which are expected to be received by a

Chapter 18 Financial Management