Comprehensive Report on Financial Management: Functions and Sources

This report provides an overview of financial management, emphasizing its importance in managing business funds and forecasting future outcomes. It defines financial management as the efficient planning, organizing, directing, and monitoring of financial activities. Key functions include resource allocation, advance fund planning, and cash flow management. The report also details the roles of financial executives and managers, such as profit allocation and financial monitoring. Furthermore, it discusses sources of finance, distinguishing between short-term options like bank loans and commercial papers, and long-term finance methods. The report concludes that financial management is crucial for effective decision-making, growth, and expansion, highlighting the significance of understanding managerial roles in optimizing resource utilization. Desklib provides a platform to access similar solved assignments.

FINANCIAL
MANAGEMENT

INTRODUCTION
Financial management is the process of managing
the funds of the business. In every organisation,
there is an issue related to scarcity of resources. The
resources of the organisation must be managed
effectively (Mousawi and Al-Darwish, 2021). This
report contains the importance of financial
management. The financial management helps in
forecasting the future outcomes of the business.

Financial management and its function
prevailing in organisations:
 Explanation of Financial Management: It can be defined as
effective and efficient planning, organising, directing and
monitoring of undertakings related to finance based areas
 Function performed in Financial Management: There are many
functions that are being carried out in financial management
such as Allocation of resources, planning funds well in advance
as where to invest how much. It helps to manage cash flow
statements, useful in taking effective decisions

Role of Financial executives and managers in
organisation:
 Allocating profit earned: When the company experience a
situation where it has adequate profit and money available with
itself it the duty of financial supervisors to locate it to best
possible alternatives for desired outcomes.
 Financial monitoring: Financial manager is demanded to
understand the usefulness of proper planning and
implementation of actions so planned in advance.

Sources of finance
 Short Term Finance: It can be explained that type of activity in
which money borrowed must be paid back within a time span of
one year. There are several types of short term fund
requirements:
 Loan from bank: It states borrowing funds from financial
institutions at a definite interest rate for a specific period of time.
 Commercial papers: It can be explained as an insecure
promissory note bought into existence by high credit worthy
organisations for generating short term fund
 Long term Finance: Fund can be raised with the help of following
methods which can be paid back over a duration of multiple
years.

CONCLUSION
From the above asserted report, it can be concluded that financial management is
important in every area. It is useful for carrying out related functions and decisions
which would help to assess effective results. It is necessary for every business to
understand the role of manager in management of funds available and how they can
be put to best possible uses. It also takes in account various measures that would help
in growth and expansion of company.

REFERENCES
 Al-Mousawi, J.H. and Al-Darwish, J.Y., 2021. Reasons of opposition in the courts of
the Islamic government (Financial, Administrative and Social) (41H–218H/661AC–
833AC). Journal of Basra researches for Human Sciences, 46(3).
 Brigham, E.F. and Houston, J.F., 2020. Essentials of financial management.
 Hacioglu, U. and Aksoy, T. eds., 2021. Financial Ecosystem and Strategy in the
Digital Era: Global Approaches and New Opportunities. Springer Nature. Hacioglu,
U. and Aksoy, T. eds., 2021. Financial Ecosystem and Strategy in the Digital Era:
Global Approaches and New Opportunities. Springer Nature
 Mestry, R., 2018. The role of governing bodies in the management of financial
resources in South African no-fee public schools. Educational Management
Administration & Leadership, 46(3), pp.385-400.
 Saptono, A., 2018. Entrepreneurship education and its influence on financial
literacy and entrepreneurship skills in college. Journal of Entrepreneurship
Education, 21(4), pp.1-11.