Financial management is one of the four functions managers must be able to perform. The other three are leadership, planning, and human resources. Financial management deals with money and the way it is used by a company to generate profits. It also includes how that money should be allocated among different departments in order for them to function properly. For example, financial management would tell you if your marketing department needs more funds or if they have enough. Get Link: Norwayoffice.biz
1. Financial Management and Marketing: It deals with planning and controlling the entire marketing activities of a concern and comprises the formulation of marketing objectives, policies, programmes and strategies. The purpose behind marketing management is to enhance the sales volume, to develop new markets, and to reach new customers. However, the philosophy and approach to the pricing policy are critical elements in the company's marketing effort, image and sales level. Since the determination of approximate price of the company's product is very important both to the marketing and financial managers, there should be a joint decision. While the financial manager can supply the vital information regarding costs, changes in costs at different levels of production and the profit margin required to carry on the business, the marketing manager provides information as to how different prices will affect the demand for the firm's product in the market and the firm's competitive position. Thus, the role of financial manager for the formulation of the pricing policies of the firm cannot be undermined.
2. Financial Manager and Personnel Management: The personnel manager organizes the personnel department, which is generally assigned the operative functions of employment, compensation, training, etc. These functions are performed in consultation with the heads of other departments. However, all these require finances and thereby the decision relating to these aspects can be taken by the personnel department, only after consulting with the finance department.
3. Financial Management & Production Management: Production is the conversion of raw materials into finished products, which is also called manufacturing of goods. The production department will have to ensure that production is carried on in the best manner at the lowest cost. However, production is indirectly related to the key day-to-day decisions by the financial manager. For instance, changes in the production process may necessitate capital expenditures, which the firm's financial manager should evaluate and then finance. Thus, management and production management are related.
4. Financial Management & Cost Accounting: Cost accounting is the steering wheel which keeps the organisation on a steady path of prosperity. Most large firms have a separate cost accounting department to monitor expenditures in their operational areas. It helps the management in carrying out its functions by providing cost information. The finance manager is concerned with the proper utilisation of funds and thereby he is rightly concerned with the operational costs of the firm. Moreover, as the financial manager of the firm will have to make suitable recommendations to keep the cost under control, the information supplies by cost accounting department is very pertinent to him.
5. Financial Management & Financial Accounting: Financial accounting is that part of accounting which is employed to communicate the financial information of a business unit. Thus, it aims ascertaining the profitability and providing information about the financial position of the concern. However, financial accounting is distinct from financial management, although both play role complementary to each other. If financial accounting is concerned with the recording, classifying, summarising and interpreting business transactions, the financial management is concerned with the task of ensuring that funds are procured at optimum cost and involve minimum financial risk. The information supplied by financial accounting is used by the financial manager to take decisions so as to help the concern in accomplishing its goals
Financial management is an important part of the management process because it keeps track of a company's financial standing. It helps to make sure that a company can pay its bills, and has enough money saved up in case something goes wrong. Financial managers are also responsible for making sure that all the other areas of business are functioning properly and being profitable so they can help keep the company afloat
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Financial Management Financial Markets & Institutions Investments
There is a close relationship between the finance function on the one hand and production, procurement, marketing, personnel function on the other. Almost all business activities in an organization directly or indirectly involve the acquisition and use of funds. The determination of production, procurement and marketing strategies are the prerogative of the chief of production, purchase and marketing divisions respectively, but for implementing their decisions funds are required. For example, the production department may decide to replace an old machine with a new one to increase the production capacity but it has financial implications too. Similarly, the purchase and sales promotion policies are laid down by the purchase and marketing divisions respectively, but procurement of materials, advertising and other sales promotion activities cannot be carried out without funds. Likewise, the recruitment and promotion of staff is the responsibility of the personnel department but recruitment and promotion of employees require funds for the payment of wages, salaries and other benefits. Many times, it may be difficult to demarcate where the one function ends and other starts. It may, however be noted that although the finance function of raising and using funds has a significant effect on other functions, it need not limit or obstruct the general functions of the business. It is possible that a firm facing financial difficulties may give more weightage to financial considerations and devise its own production and marketing strategies to suit the situation. On the other hand a firm with plenty of funds may not have much rigidity with regard to financial considerations vis-Ã -vis other management functions. In such a firm, financial policies may be adjusted to the needs of the decisions relating to production, procurement, marketing and other functions Email Based, Online Homework Assignment Help inRelationship Between Financial Management and Other Areas of Management Transtutors is the best place to get answers to all your doubts regarding relationship between financial management and other areas of management with examples. Transtutors has a vast panel of experienced in relationship between financial management and other areas of managementfinancial management tutorswho can explain the different concepts to you effectively. You can submit your school, college or university level homework or assignment to us and we will make sure that you get the answers related to relationship between financial management and other areas of management
because to achieve profit
Modern approach of financial management provides a conceptual and analytical framework for financial decision making. According to this approach there are 4 major decision areas that confront the Finance Manager these are:- a) Investment Decisions; b) Financing Decisions; c) Dividend Decisions d) Financial Analysis, Planning and Control Decisions
The GFEBS provides the Army with financial information across its operations. It integrated six functional business areas. These Ares include fund management, spending chain, cost management, financials, reimburseables, and property, plant, and equipment.
main areas of financial managment
Financial Management Financial Markets & Institutions Investments
Financial Management Financial Markets & Institutions Investments
Discuss capital structure theories and the appropriate theory for your organization if any
There is a close relationship between the finance function on the one hand and production, procurement, marketing, personnel function on the other. Almost all business activities in an organization directly or indirectly involve the acquisition and use of funds. The determination of production, procurement and marketing strategies are the prerogative of the chief of production, purchase and marketing divisions respectively, but for implementing their decisions funds are required. For example, the production department may decide to replace an old machine with a new one to increase the production capacity but it has financial implications too. Similarly, the purchase and sales promotion policies are laid down by the purchase and marketing divisions respectively, but procurement of materials, advertising and other sales promotion activities cannot be carried out without funds. Likewise, the recruitment and promotion of staff is the responsibility of the personnel department but recruitment and promotion of employees require funds for the payment of wages, salaries and other benefits. Many times, it may be difficult to demarcate where the one function ends and other starts. It may, however be noted that although the finance function of raising and using funds has a significant effect on other functions, it need not limit or obstruct the general functions of the business. It is possible that a firm facing financial difficulties may give more weightage to financial considerations and devise its own production and marketing strategies to suit the situation. On the other hand a firm with plenty of funds may not have much rigidity with regard to financial considerations vis-Ã -vis other management functions. In such a firm, financial policies may be adjusted to the needs of the decisions relating to production, procurement, marketing and other functions Email Based, Online Homework Assignment Help inRelationship Between Financial Management and Other Areas of Management Transtutors is the best place to get answers to all your doubts regarding relationship between financial management and other areas of management with examples. Transtutors has a vast panel of experienced in relationship between financial management and other areas of managementfinancial management tutorswho can explain the different concepts to you effectively. You can submit your school, college or university level homework or assignment to us and we will make sure that you get the answers related to relationship between financial management and other areas of management
It is normally divided into three broad areas: auditing, financial/tax and management accounting.
You have a opportunities in financial sector in areas like cash operations,budget management,business plans,brand management,product management.
because to achieve profit
At most universities, these are areas included in a Business Management or Business Administration degree (some schools refer to this degree as Financial Management).
If 'S' is the relationship between actual and scale linear dimensions,then 'S2' is the relationship between actual and scale areas.
1 - Cost accounting 2 - Financial accounting 3 - Management accounting
Discuss the functional area of management? The functional area of management includes the tasks and responsibilities of planning, organizing, leading, and controlling an organization's resources in order to achieve its goals and objectives. These resources can include financial, human, technological, and natural resources. Effective management in these areas helps to increase efficiency, productivity, and overall performance of the organization. The functional areas of management include operations management, human resources management, financial management, and strategic management. My recommendation: https://www.digistore24.com/redir/391113/Michiyana/