what is finance management
Financial management: concepts, aims and tasks in business activities.
In recent years in the economic lexicon increasingly includes the term “financial management”. what is finance management: asset and liability management; the development of business - plans; the analysis of financial statements; development of price policy, etc. Since the term “financial management” in translation means “financial management”, then it is interesting to learn, how it is interpreted in the USA and Europe. Financial management is the science and art of making investment decisions and to find the financial sources.
At the present time with the entry into the market economy there was a hope that the financial management will bring to the economy of the enterprise a new system of values, change the priorities in the development of entrepreneurship.
For the optimal functioning of the financial management, there are certain conditions in the economy.
1). Private ownership of the means of production and land.
2). Self-financing of the entrepreneurial activities.
3). Freedom of pricing.
4). The market of labour, capital, goods.
5). A clear financial and economic legislation.
Proceeding from this, in the textbooks, publications economists common understanding of financial management is the management of the movement of financial resources and financial relations of the subjects of the market.
what is finance management: goals and Objectives of financial management.
The main purpose of financial management is to increase the welfare of the owners and staff. Hence, given a certain task of financial management.
1). Formation of financial resources of the necessary sizes.
2). Financial planning.
3). Investment of funds in the most effective entrepreneurship.
4). Reduction of the investment risks.
5). Implementation of financial accounting, control and analysis.
Financial Manager - a specialist in the field of management of financial resources, with a special education and performing certain duties. The main function of it is the creation of conditions for the use of financial capital in the interests of the company. Hence the capital market, securities - the object of the highest interest.
Financial management has to deal with a continuous circulation of capital, each stage of which requires a balance of material and labor resources. Financial Manager supervises the distribution of the Finance and forms of wage Fund, investment Fund, profit, etc. It influences the work of the whole personnel of the company through the system of payment for labour. The financial Manager should seek to expand the spheres of influence of the company, finding partners, connection of new enterprises, etc. He explores the level of costs and seeks to reduce them, thus - to attract a profit. Provides issue of securities, works closely with insurance and credit institutions.
what is finance management: Market-based instruments require the careful selection, the ability to use them, to achieve outcomes that in conditions of the Russian market is particularly difficult. Litera tour, as a rule, transfer, which explains the mechanics of using Finance on the capitalist market, but the logic of the functioning of - universal.
