Importance of Finance Functions, Role of Financial Management, Sources of Finance

Financial
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 4............................................................................................................................................3
Importance of finance functions:.................................................................................................3
Role of financial management:....................................................................................................5
Sources of finance:.......................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Finance is the backbone of every organisation. Finance is all about to generate the
activities of every department by providing funds to them. It describes the system of money
management, investments and other financial instruments. Financial management is all about to
manage the money by arrangement of funds, acquiring needed funds. It is the process of
planning, organising, analysis, managing, controlling etc. financial resources in order to
accomplish organisation objectives. It is the area which covers profitability, expenses, income,
liabilities, assets etc. financial managers uses the funds properly, they helps in reduce the cost of
capital and it increases the value of the company. The company which is selected for this report
is Tesco. It is the British multinational company which is deals in retail sector. It was founded in
1919, headquarter situated in UK. This report covers topics such as importance of finance
functions, role of the financial management. Apart from this it also covers topics such as sources
of finance (Herdjiono and Damanik, 2016).
TASK 4
Importance of finance functions:
Financial functions is the process of planning and controlling of financial resources. This
involves the acquiring and utilization of funds in order to efficient activities. In context to Tesco,
firms finance department helps it to managing and acquiring funds so that it can generate its
activities efficiently.
Importance of financial functions:
 Identify the needs of funds: The finance department is works for identifying needs
which business requires for formulating its other departments activities includes
production, HR, finance, sales etc. in this manner finance department assessing monetary
needs of the company. In context to Tesco, financial functions helps it to know initial
capital, how much capital it needs, have and requires to raise (Madura, 2020).
 Identify the sources of finance: Finance functions helps business for knowing its
financial requirements and after that how company manages its funds from where it can
raise money. In context to Tesco, firms finance managers allow firms for borrowing and
getting funds various shareholders.