Financial management is what should be in your company

Financial management is the methods, tools and methods that are used at the enterprise in order to increase profitability and minimize the risks of insolvency. He pursues one main goal - to obtain the maximum possible benefit from the activities of the organization, acting in the interests of the owners.

The main functions of financial management:

1) planning of internal finance;

2) analysis and diagnosis of the financial condition of the organization;

3) investment management;

4) regulation of financial risks ;

5) other.

Financial management is a complex process that involves procedures of different levels of responsibility and complexity. At the first level, financial decisions are made for the future development of the company's current operations, financing sources are being attracted , and a certain financial policy is being implemented. These tasks are considered the most difficult and responsible. Their decision is taken by top leaders, and delegation takes place only in part.

At the second level, various financial calculations are performed, financial documents are drawn up, and reports are compiled. These are simpler tasks that are solved by employees of financial, accounting, and economic services, and some of them are assigned to business units.

Financial management is the fulfillment of the strategic tasks of the enterprise with the implementation of the corresponding financial policy. At the moment, the most important task of the organization is the maximization of firm prices. Considering the theoretical bases of financial management, it is necessary to dwell in more detail on the financial policy of the enterprise. It includes the following elements:

1) maintaining the accounting policy;

2) implementation of credit policy;

3) the creation of methods for controlling costs, the classification of costs and the calculation of the proportion of fixed costs in cost;

4) conducting tax policy, as well as tax planning;

5) implementation of investment policy.

The financial system is complex, dynamic and open. Its complexity lies in the fact that it is formed by inhomogeneous constituent elements with the presence of different-character bonds between them. Dynamism is due to its constant development and change in the amount of financial resources, fluctuating demand and supply to capital. And due to the exchange of information of the financial system with the external environment, it can be called open.

International financial management includes serious financial reporting, where the responsibility for implementation lies with the management of the enterprise. The results, profits and losses are considered, calculations of changes in the financial condition of the enterprise are made. The information that should be published is checked by the auditors.

So, financial management is the art of managing the movement of finance, as well as controlling the financial relations that arise between enterprises in the process of the movement of these funds. He develops the objectives of managing financial resources and implements them through various levers and methods of the financial mechanism to achieve the goal.