Importance of Financial Functions in an Organization

Financial management
Report

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
1. What are the importance of financial functions with in the organisation?..............................3
2. explain the role of financial manager in organisation?...........................................................4
3. Describe different sources of finance in company?................................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6
Books and journal.......................................................................................................................6

INTRODUCTION
Financial management is the activity that are concerned with expenses, cash ,
profitability, indirect expenses, so company can achieve their objectives effectively and
efficiently. As it is concerned with short term working capital management relates to current
assets and liabilities. On the other hand it also involves long term financial management like
capital budgeting. The organisation that was selected in this assignment is Morrisons as it great
supermarket in UK. David Potts is the Chief executive officer of the brand. It have around 494
store in different locations. The topics which is included in this assignment are importance of
financial function in context to organisation, role of finance manager in corporate, different
sources of finance , etc. At last conclusion is given regarding such financial functions and
services (Barr, 2018)
TASK
1. What are the importance of financial functions with in the organisation?
Financial functions as it is financial management part it, concerned with activity of
planning and controlling financial resources. It includes acquiring & fund utilisation activity
which is important for efficient business operation. There are three type of financial functions
such as short term finance, medium term finance, long term finance.
Their Importance in context to organisation
 Helps to identify needs of finance- To start any business whether small or big it is
necessary to know what amount is actually needed to open the business initially. As this
function helps to understand how much invest as initial capital, what amount you already
have & how much need to raise from different sources(Barr, 2018)
 supports to find out different sources of finance-
 After knowing that how much amount you require to raise than various sources are
analysed by organisation Morrisons in context to risk and return. The funds can be
borrow from shareholders, banks, NBFC, from other firms or companies etc.
 Comparison of different source of finance become possible- After finding various
sources to fund comparison is done by finance team of Morrisons on the basis of cost as
well as risk involved. The source which involves less risk and offer high return can be
chosen by the organisation Morrisons.