Financial Management
in Organizations
Financial Management
In an Internal Company or Organization, the financial regulation activities are
commonly reffered to as Financial Management.
Financial management is all forms of activities related to how to get capital
funding, use or allocate these funds and to manage assets owned by the
company to achieve the company's main objectives.
Financial Management by The Expert
Riyanto (2011)
The meaning of financial management is all activities related to business to get
funds and use or allocate these funds. The executor of financial management is a
financial manager. For example: companies need various assets or assets for their
operations. For this reason, companies need to find funds to finance these
operational needs.
Sutrisno (2005:3)
Definition of financial management is all the activities of a company that is
related to businesses obtaining company funds with low costs and efforts to use
and allocate these funds efficiently.
Financial Management
Finance is the science and art of making money, which affects everyone and
every organization.
Finance relates to processes, institutions, markets and instrument involved in
money transfers, between individuals and between business and government.
Financial management in many ways also influences the decision making of a
corporate organizational problem. Decisions relating to finance are in the
form of assets needed.
The executor of financial management is a financial manager.
Prepare capital structure...
The Purpose of Financial Management
The main objective of Financial Management is to maximize the value of the
company or provide added value to assets owned by shareholders.
To maximize profits.
Maintain the flow of cash flow from the company.
Prepare capital structure.
Appropriate financial utilization
Maximizing company wealth
Increase the efficiency of the company department.
Function
The following are some important functions of financial management for corporate organizations
Planning
Planning or financial planning. This includes planning of cash flows and corporate profits.
Budgeting
planning for the receipt and allocation of cost budgets more efficiently and efforts to maximize funds owned
by the company
Financial control
This is a stage to evaluate and improve the financial and financial system of the company. • The auditing or
financial audit process, which is an internal audit based on the company's existing finance so that it can be
in accordance with accounting standards and not until there are irregularities in it.
Financial reporting
which provides various information reports about how the company's financial condition is and about the
ratio analysis of the financial statements.
Function of Financial Manager
A financial manager has a huge responsibility for what he has done. Financial decision making
which is the biggest responsibility for a financial manager is divided into three types, namely :
Investment decision: relating to the problem for the desired investment choice of an
organization on the opportunities available by choosing one or more of the alternative
investments that are valued to have a large advantage.
Financing decision: relates to the problem of choosing from various forms of sources of
funds available to make investments by choosing one or more of the alternative spending
that causes the lowest cost.
Dividend decision: relates to various problems determining the percentage of profit that will
be paid as cash dividends to shareholders
Financial Management Planning
Detemine the purpose of the organization
Determine the right organizational activities
Looking for a definite source of income for the organization
Determine the appropriate expenditure for each activity that will be carried
out
Record organizational finances neatly