Goals and objectives of financial management
In English, the term financialmanagement means the management of the organization's finances. Financial management is a whole science of how to use your own and borrowed funds from outside, how to maximize profits with minimum risk, how to make the enterprise solvent, highly liquid, competitive and financially attractive. On how accurately the goals and objectives of financial management are fulfilled, the current state of the enterprise and its future prospects largely depends.
The goals and objectives of financial management are closelyintertwined with each other. The fundamental goal of financial management within the framework of the operation of a particular enterprise is to ensure the fastest increase in the welfare of owners and founders of the organization, both in the current and future period.
To achieve the main goal, it is necessary to implement the following tasks:
- based on the development strategy of a particular enterprise, provide it with the necessary financial sources;
- in the process of development of the enterprise to ensure its financial equilibrium or financial stability;
- Maximize profits with a minimum level of financial risks;
- for the normal functioning of the company's accounting policy to optimize the money turnover;
- in the context of priority areasthe firm's activities ensure the effective use of banknotes and other financial resources. As can be seen, the goals and objectives of financial management are mandatory for implementation and largely determine the success of the organization.
Financial management at the enterprise is realized ininherent to it functions. Functions and tasks of financial management have a clearly expressed relationship, because the tasks of financial management in many ways determine its functions. The main functions of financial management are:
- planning of finances at the enterprise isplanning for absolutely all income and expenditure items of cash equivalents to ensure the sustainable development of a particular enterprise. Depending on the size and scale of the company's activities, this function is given a different meaning;
- forecasting is the development andcorrection of changes in the financial condition of the enterprise as a whole and its various divisions. Forecasting can be carried out both with the help of peer review by transferring the past state of the enterprise to the future, and direct planning and anticipating future changes;
- regulation is the impact on management,in the process of which the state of financial stability and sustainability of the enterprise is reached in the event of some deviations from the schedule. It includes all current measures to eliminate the deviations from planned schedules, planned tasks and fixed standards and norms;
- The control function is designed to reflect the state of the turnover of enterprise resources and provide control in the field of management decisions;
- The organizational function is designed to provide a systematic approach in the process of organizing cash flows. This function is reduced to the consolidation of the entire team, which implements the financial program.
Functions, goals and objectives of financial management inmany determine its essence, according to which financial management is a whole system of methods, actions and principles for the development and implementation of clear management decisions that are directly related to the process of formation, accumulation, distribution and use of the company's financial resources.