Functions

• The identification of financial needs: addressing needs, description of existing resources, foresight and released resource calculation of the external financing needs.

• The achievement of financing according to its most beneficial: taking into account costs, deadlines and other contractual conditions, fiscal conditions and the company’s financial structure.

• The judicious application of financial resources including cash surpluses: a way to get a balanced financial structure and adequate levels of efficiency and profitability.

• The financial analysis: including good harvest, though the study of information so as to obtain definite answers on the company’s financial situation.

• The analysis on the economic and financial viability of investments.

Organization

The shape of the structure of a company has to do with their size. If the company is large, the importance of the financial issue is decisive, then it is contained in the organizational function of a financial manager or administrative / financial manager. The financial manager is a person who makes decisions on financial management set out in the strategy, from the vision and mission of the company. This is your role as manager and strategist.

Management or leadership in this area depend on the Treasury, where funds are kept in power in the company (before they are applied as payment or deposit). Treasury area depends Collections, producing all income.

There is also the area of payment or accounts payable, which is responsible for receiving the required documentation to make a payment, verify that appropriate and require the appropriate permits.

Also there is usually an area of financial budget or budgetary control, which is the sector that makes financial management in a management strategy. Here is where he discusses the company’s financial position and better options arise requiring the funds or invest.

Financial management is directed toward the efficient use of an important economic resource: capital. Thus it is argued that the maximization of profitability should serve as a basic criterion for financial management decisions.

However, the criterion of profit maximization has been questioned and criticized on the basis of the difficulty of its implementation in real world situations. The main reasons for this criticism are:

Fundamental ambiguity

A practical difficulty with the criterion of profit maximization is that the term profit is vague and ambiguous concept, that is, unless he has a precise connotation.

It is susceptible to different interpretations to different people.
The scholars will argue that the benefit may be short term or long-term benefit may be total or ratio of profit before or after tax, may be related to the capital employed, total assets or shareholders’ equity, etc. .

If profit maximization is the goal, the question arises which of these variants should seek to maximize the benefit a company. Obviously, a vague expression of benefit can not constitute the basis of an operational financial management.

Since the formation of the company as a social entity is convenient to distinguish the objectives of the company considered from the perspective of financial management from the viewpoint of economic theory

In this sense, published a short guide which shows some of the key points that every new entrepreneur should take into account when launching their company, and we believe you will be of great interest.

We deliver what people are willing to buy, not what we want to sell

Prospective entrepreneurs believe they have a fantastic and revolutionary idea that is so good to be an almost instant success. Launched by a blind optimism, prepare a business plan create your factory and wait for the public to discover how great “visionary.”

However, too often, to launch the new product is not made a serious study of the market or whether there is a need to purchase, or if we are able to generate such a need should not exist.

For example, suppose you want to get into the field of sports shoes. Our initial idea may be to create a shoe with the most advanced materials and sophisticated in the world, outperforming significantly above what is being done at this time. We do have the opportunity to be truly revolutionary, but so is that failure can be loud, for a lot of innovation that we instill in our product.

In this sense, it may be best that we have to settle for entering the field of high-end sneakers, because in any case it is better to have a small market share, than no market at all.

When we speak of the management and administration we refer to a social science that studies, how it organizes and manages a business, how to manage the resources with which account, the processes through which it passes and the results of their activities.

This study is also based on financial and administrative sciences also undertakes accounting, marketing, corporate finance and strategic management. In short, to complete the definition, we can say that the management and administration are part of the legal branch of law is also the foundation of all operating within an enterprise.

However we must emphasize that innovations such as the size of the numbers V and fifteenth centuries as well as with the emergence of accounting in 1490 gave to the profession with the tools to make planning and control of the organization in a way you could say almost scientific.

However, many people who still think in the management and financial management as a modern discipline that was beginning in the nineteenth century and twentieth-century management and administration began an evolution as organizations grew and becoming increasingly complex.

The role of a person who directs the management and administration of finances of a company is very varied, as they always depend on the level at which it is situated.

The more you worry about knowing or learning how tasks are executed, will be better prepared to act on an operational level of the company in charge and everything else to handle development of new concepts, more training will have to work on institutional level of the company.

A person responsible for management and administration should have full knowledge of how to prepare a cost estimate, or prevention of sales, as well as you understand how an organization is constructed, as we read a balance and above all things is produced and developed the planning of the production control of the company, among other things.

This knowledge is extremely valuable for the management and administration, however the most important and fundamental is the question as to how they should be used and under what circumstances to apply properly. The title is required to reach this status is college-level work and although many think it is a master, the truth is that this title is the degree in management and business administration.

The scope of the title is based on the organization of human and material resources, and above all the correcting and preventing errors in management and business administration.

Although almost all companies and organizations use information technology in almost every business process is rife that there is no real awareness of the cost of this technology poses.

This entails serious disadvantages:

* Technological resources are wasted.
* Not properly budgeted costs associated therewith.
* It is virtually impossible to establish a consistent price policy.

The main objective of Financial Management is to assess and control the costs associated with IT services so as to provide quality service to customers with an efficient use of IT resources required.

If the IT organization and / or their clients are not aware of the costs associated with services may not assess the return on investment and may provide consistent technology investment plans.

http://opuscs.com/images/financial.jpg

Distinction between economic and financial

The economic concept is related to the results, gains and losses, costs.

Financially is all related to the particular movement of funds, revenue (sources) or outflows (applications).

Financial Planning

Sound financial management does not evaluate or only if you have no money now: it comes to planning, to provide good governance for the future and the likely lack or excess of money (deficit or surplus).

The primary tool for financial planning is the financial budget, which is part of a larger system called the budgetary system. Within the budgeting system, the financial budget deficits likely to anticipate, develop strategies to meet them, and simultaneously analyzed the possible investment decisions to be made in the case of surplus.

Banking

Banks carry out various operations are those that characterize his administration. To pursue them is necessary to complete various forms.

Bank reconciliation

Is the analysis of the current account information. We compare the company’s accounting information, and analyzes the differences, making appropriate adjustments.
Contribute a better translation