Financial Management Report: Key Concepts and Practices

This report provides a comprehensive overview of financial management, encompassing its definition, core functions, and significance for corporate success. It delves into the value of financial functions, highlighting their role in acquiring financial resources, optimizing capital allocation, and maximizing shareholder value. The report further examines the roles and responsibilities of a financial manager, including financial planning, budgeting, and financial data analysis. Additionally, it describes the various sources of capital available to a company, differentiating between long-term and short-term financing options, such as internal accruals, term loans, and trade credit. The report emphasizes the importance of effective financial management for sustainable business growth and profitability.

Task 4: Financial
management Report –
individual work

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Give detailed description about financial management .............................................................3
Describe the value of financial functions for a corporation........................................................3
Provide various roles and responsibilities undertaken by financial manager of the company...4
Give description of various sources from which the company collects capital..........................4
CONCLUSION...............................................................................................................................5
REFRENCES ..................................................................................................................................6
Books and journal.......................................................................................................................6

INTRODUCTION
Every organisation uses their financial resources to conduct various operations which
would positively impact on the growth rate of their business. For this purpose impressive
management of various financial assets of the company is necessary. The task of financial
management is conducted at every firm which aims to expand their market presence and achieve
perpetual success. This report includes description of financial management along with value of
several financial functions . Apart from this, the roles and responsibilities undertaken by the
financial manager and different sources of funding and their status as long term or short term
source is given in this report.
MAIN BODY
Give detailed description about financial management
Financial management may be defined as the division of a company of the company
which looks into profits generated, expenditure and investment of funds so that the company has
the financially capable to attain tier goals in manner which gives them maximum satisfaction.
This practice involves usage of broad management constructs and ideas in order to gain funds,
allot capital and regulating proper utilisation of all the financial capabilities of their company.
Usually this field of management is connected to short term working capital management, with
concentration on current assets as well as current liabilities and control of foreign currency and
product cycle in case of fluctuations in the international market (Aldakhil, 2016) . Construction
of plans and schemes which maximise total profit and determining suitable financial system
which utilises the finances present in the company for efficient functioning of each activity in the
company to gain competitive edge in their industry. Financial management is related to other
fields of finance mainly managerial finance and corporate finance. Managerial finance deals with
managerial importance of financial methods while corporate finance is the field which
encompasses formation of long term capital budgets and is usually associated with enterprises
which earn high profits (Apte and Kapshe, 2020) .
Describe the value of financial functions for a corporation
The finance function is an significant element of financial management and it deals with
acquisition of financial resources along with proper usage of such funds to reach the highest
possible profit level and efforts with help of such resources which increase the value of their

corporation (Chandra, 2020) . Generation of funds from suitable sources depending on the time
period of their returns such as long term financial sources and short term financial sources is
crucial task which helps the company smoothly conduct all their projects, this is completed with
the help of financial function. Satisfaction of shareholders by giving them appropriate monetary
returns on their investments is essential for the firm as dissatisfied shareholders increase conflict
at the highest positions of the company which is recipe of disaster for the conglomerate. This
process is completed in an effective manner by the financial functions by the construction of
efficient dividend policy which and satisfies shareholders by giving the ample part of profits or
bonus shares and retains sufficient earnings for further growth of the company (Ross, 2016) .
Appropriate investment of the firm's capital on various external programme with minimum risk
to improve performance of the company in various departments such as R&D, HRM and others
is another important aspect of financial functions which further increases the value of the
company.
Provide various roles and responsibilities undertaken by financial manager of the company
The job of financial managers is complex filled with various obstacles. One of the main
responsibilities of a financial manger is to build a financial plan which predicts revenues, costs
and other financing requirements for a given time period and formulating budget which directs
the company about effective usage of their current financial resources of the establishment for
growth of the company on the basis of forecast. Forging schemes which enhance profit
collection of the company by analysing market trends is the role of a financial manager
Financing such budgets and strategies to increase profits for a particular time period from
internal and external sources is a responsibility undertaken by the financial manager . Gathering,
interpreting and revisiting financial data of the firm in order to increase the relevancy of long
term and short term financial initiatives implemented at the company ( Süer, 2020) . The
financial manager is required to work in coordination with managers of other divisions such as
HRM, ales and marketing divisions to assure efficient working of the company through use of
capital.
Give description of various sources from which the company collects capital
Collecting capital is an important component of financial management and sources for
finance collection are differentiated by their proprietorship and amount of time for which the
funds are needed by the corporation. Long term finance options such as internal accruals and

term loans are paid after the minimum time period of an year. Internal accruals are contained
within the imperishable capital of the firm as they include reserve of earnings that the company
has accumulated. Gaining such funds does not require any investment as they are present
internally but their expenditure needs to be permitted from the shareholders of the company. The
loans given by Banks are type of long term financing source as their payment ranges from 1 to
30 years. This type of loan is called term loan with typically low interest rates but require huge
collateral (Aldakhil, 2016) . Trade credit is short term source of finance and primary source of
working capital winch involves postponement of payment allowed by the lender or material
supplier for short amount of time depending on the financial position and debt record of the firm
and traditions of the industry.
CONCLUSION
From the above report it is determined that effective management of finance present in a
company is necessary for growth and increase in profitability. Financial functions such as
identification of finance resources and their advantageous issuance to various divisions of the
company, shareholders and investment in outside programmes enhance the financial position of
the firm and increase their value. Financial managers use various sources of capital generation
with payment in short or long time period to conduct tasks such as constructing policies to
increase profit and forming budgets by accurate forecast of future market trends.

REFRENCES
Books and journal
Aldakhil, 2016. Effective Financial Management of Supply Chain through the Use of Emerging
Technology. International Journal of Financial Research, 7(1). pp.189-194.
Apte and Kapshe, 2020. International Financial Management|. McGraw-Hill Education.
Chandra, 2020. Fundamentals of Financial Management|. McGraw-Hill Education.
Ross, 2016. A Case Study of Municipal Government Financial Management and Effective
Internal Controls. Northcentral University.
Süer, 2020. Essential Financial Management Skills for Tourism Enterprises: An Application
Case of a Tourism Enterprise in Izmir. In Industrial and Managerial Solutions for
Tourism Enterprises (pp. 147-164). IGI Global.