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Showing posts from March, 2022

What is Financial Management and responsibilities of finance manager's?

 Finance management is a process of managing money with the help of planning, organising, directing and controlling the function of a organisation to meet the financial objective. It includes allocation of resources of finance, managing the cash in an organisation, managing the revenue generated from business activities, managing the expenses and reporting or recording the financial transaction in a book of accounts. Finance has three main functions: Investment decision Dividend decision Financing decision Investment decision: Finance manager uses capital budgeting techniques to make investment decision. With the help of capital budgeting manager can invest money in those assets which gives higher return in future. As we all known future is uncertain and to measure it , is a difficult task. So, risk and return of investment proposals both are evaluated to choose the best proposal to get higher return in available risk. Financing decision: It is related to the equity an