FINANCIAL MANAGEMENT

Jun 18th, 2015
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Financial management overlaps with the financial function of the Accounting profession. However, financial accounting is the reporting of historical financial information, while financial management is concerned with the allocation of capital resources to increase a firm's value to the shareholders.

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INTRODUCTION TO BUSINESS FINANCEWhen you start up in business you will need finance. Should you use your own money, borrow from family and friends, or go straight to the bank? What about invoice financing and factoring? Do you want a business angel? Understand the different forms of borrowing and choose the best financial option for your business.DEFINITION OF BUSINESS FINANCERaising and managing of funds by business organizations. Such activities are usually the concern of senior managers, who must use financial forecasting to develop a long-term plan for the firm. Shorter-term budgets are then devised to meet the plan's goals. When a company plans to expand, it may rely on cash reserves, expected increases in sales, or bank loans and trade credits extended by suppliers. Managers may also decide to raise long-term capital in the form of eitherdebt(bonds) orequity(stock). The value of the company's stock is a constant concern, and managers must decide whether to reinvestprofits or to paydividends. Other duties of financial managers include managing accountsand fixing the optimum level of inventories. When deciding how to deploy corporate assets to increase growth, financial managers must also consider the benefits of mergers and acquisitions, analyzing economies of scale and the ability of businesses to complement each other.CONCEPT OF BUSINESS FINANCEBusiness finance is the area of finance dealing with the sources of funding and thecapital structu

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