Meaning of Financial Management
Elite Coaching Financial Management segment has to do with planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise.
What Functions are included in our financial management service?
Estimation of capital requirements:
We make estimations with regard to the capital requirements of the company. This will depend upon expected costs and profits and future programs and policies of concern. We estimate the adequate manner which increases earning capacity of the enterprise.
Determination of capital composition:
Once the estimation has been made, the capital structure has to be decided. This involves short-term and long-term debt-equity analysis. This will depend upon the proportion of equity capital a company is possessing and additional funds which have to be raised from outside parties.
Choice of sources of funds:
We make sure to achieve multiple choices for additional funds to be procured by the company. Choices like:
A collaboration needs to be made to allocate funds into profitable ventures so that there is safety on investment and regular returns is possible.
The net profits decision has to be made by the finance manager. This can be done in two ways:
Management of cash:
We manage decisions with regards to cash management. Cash is required for many purposes like payment of wages and salaries, payment of electricity and water bills, payment to creditors, meeting current liabilities, maintenance of enough stock, purchase of raw materials, etc.
We do not only plan, procure and utilize the funds but we also do exercise control over finances. This can be done through many techniques like ratio analysis, financial forecasting, cost and profit control, etc.