Financial Management means planning, organizing, directing and controlling the financial activities of the enterprise. It means applying general management principles to financial resources of the enterprise.
Articles on Financial Management
Financial Planning is the process of estimating the capital required and determining its competition. It is the process of framing financial policies in relation to procurement, investment and administration of funds of an enterprise.
There are maily 4 Finance Functions - Investment Decision, Financial Decision, Dividend Decision and Liquidity Decision. The article will help in understanding each Finance Function in detail.
Finance keeps the organizations going and without cost control, profitability, and efficiencies, organizations would cease to exist. This is the reason why the finance function is important. This article discusses these aspects as well as the management of the pension schemes, the tax deduction at source, payroll, claims processing and other activities of the finance function.
A financial manger is a person who takes care of all the important financial functions of an organization. Lets discuss the main functions of a Financial Manager.
Capital Structure is referred to as the ratio of different kinds of securities raised by a firm as long-term finance. The capital structure involves decisions like Type of securities and ratio between securities
Capitalization comprises of share capital, debentures, loans, free reserves,etc. Capitalization represents permanent investment in companies excluding long-term loans
The most important goal of a financial manager is to increase the owners economic welfare. The economic welfare refers to maximization of profit or maximization of shareholders wealth.
Many economists have argued that profit maximization has brought about many disparities among consumers and manufacturers.
Whether youre a business or an individual, you will have to develop a financial management system to ensure the stability for many years to come. Lets discuss the modern financial management techniques that will change your business.
We often hear the term financial intermediaries mentioned in various contexts. This article aims to define and explain what financial intermediaries are and their role in the financial system. This is an introductory article aimed at students and professionals seeking to enhance their understanding of the financial system by focusing on one of the very basic components of the financial system.
This article provides an overview of one of the most important support functions in corporates which is the Finance Department and which touches the lives of the employees directly and indirectly. Indeed, the key theme in this article is that most employees think about the finance function only when their salaries and bills are paid and this article suggests that employees take some time to understand this function in the larger scheme of things within corporates.
This article discusses how financial innovation has revolutionized the world of business and finance but also threatened to bury the global economy. Further, the key theme of the article is that financial innovation can be a force for good as well, and we take some examples to show how social entrepreneurs are using financial innovation to transform the lives of the poor. Finally, this article argues that innovations are value neutral, and it is up to us to use them for good or bad purposes.
Aspiring for a career in banking and finance? Dreaming about the Million Dollar Bonuses and Global Jet setting? Lured by the glamour and glitz of finance? Read on for some things you need to know to prepare for such careers and remember that beneath the shine, there is also grime and hence, start the race with the wind behind you.
Are you aspiring for a career in finance? Are you dreaming of globetrotting and wining and dining in the best places. Read on for tips and suggestions on how you can prepare for a demanding career which is what finance is all about. Also, we recommend that you develop a worldview and a sense of perspective that would help you navigate the pitfalls and other traps that can derail the best of the financial professionals.
This article demystifies the arcane world of financial models and explains what it is, how it is useful, and the purpose it serves. In addition, this article also discusses how bankers and financial professionals across the value chain and the hierarchy of the BFSI Pyramid use financial modeling to assess the soundness of the financial decisions. The analogy of the Doctors arriving at the diagnosis and prognosis of the patients condition using the results of the tests, the past history, and the present condition is examined to provide readers with an understanding of how financial professionals recommend or reject key decisions.
This article explains the difference between innovation and financial innovation. Some examples of financial innovation have been provided in this article. Lastly, parameters to distinguish between good and bad financial innovation have also been mentioned.
This article describes the dire economic situation at Eskom, which is a utility company in South Africa. It also explains why and how Eskoms economic woes will affect the entire economy.
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