Report on Financial Management: Functions, Roles, and Finance Sources

This report provides an overview of financial management, emphasizing its functions within an organization, the crucial roles of financial managers, and the various sources of finance available to businesses. It defines financial management as the planning and controlling of a firm's financial resources, highlighting the importance of financial planning for optimal fund allocation. The report details the functions of financial management, including effective resource allocation for long-term profitability. Furthermore, it distinguishes between long-term and short-term finance, providing examples such as equity shares, debentures, commercial paper, and trade credit. The conclusion underscores the significance of financial management and the critical roles finance managers play in ensuring businesses have the necessary funds, whether short-term or long-term, to operate effectively. References to academic articles are included to support the information presented.

FINANCIAL MANAGEMENT

Content of the Report
INTRODUCTION
MAIN BODY
1.Financial management and its function within the organisation:
2.Role of the Financial managers in the company:
3.Sources of finance:
CONCLUSION
REFERENCES

Introduction
Financial management is the tool used in the business to
ensure that funds of the organisation has been utilised in and
effective and efficient manner. This report contain function
and importance of financial management to an organisation
along with this role of financial manager has been explained.
At the end sources of finance has been explained from which
the business gets funds to run the business.

Financial management and its functions
within the organisation
 Definition of Financial Management:
Financial management is that managerial activity which is concerned
with planning and controlling of the firm’s financial resources. In other
words, it is concerned with acquiring, financing and managing assets
to accomplish the overall goal of a business enterprise (mainly to
maximise the shareholder’s wealth).
 Function of Financial Management:
Financial Planning:
It is an important step as funds of the business if under or over
utilised then productive output will not be generated by the business.
If the funds are properly allocated, then it will lead to profitability to
corporate in the long run.

Sources of Finance
 Long term Finance:
Long term finance is those which are obtained once will be repaid after
the particular span of time say 5 years, 10 years etc. Funds which are
raised through these instruments will be repaid in multiple years. The
example of long term finance can be funds raised through issue of
equity shares, preference shares, debentures, terms loans etc.
 Short Term Finance:
The short term finance must be repaid by the entity within the year
from the date of takin of such loan. The example of short term finance
can be commercial paper, trade credit, bank overdraft facility, bills of
exchange, deposit certificate and so on.

Conclusion
 This report highlights the definition of financial management and its
function for an organisation. This statement provides the role that
the finance mangers plays within the organisation. Every business
required funds to run their business and such funds are described
above that can be short term or long term depending upon the needs
of the company.

References
 Bachiller, P., Boubaker, S. and Mefteh-Wali, S., 2021. Financial derivatives
and firm value: What have we learned? Finance Research Letters. 39.
p.101573.
 Biplob, H. and Abdullah, M., 2019. The importance of islamic financial
literacy for muslims: a general review. Islam & Civilisational Renewal. 10(1).
 Gathungu, J.M. and Sabana, B.M., 2018. Entrepreneur financial literacy,
financial access, transaction costs and performance of microenterprises in
Nairobi City County in Kenya. Global Journal of Management and Business
Research.
 Omondi-Ochieng, P., 2020. Financial performance of the United Kingdom's
national non-profit sport federations: A binary logistic regression
approach. Managerial Finance.
 Van Horne, J.C., 2020. Fundamentals of financial management