INTRODUCTION TO FINANCIAL

MANAGEMENT
FINANCE FUNCTIONS
FINANCE

 It is the art and science of managing money.

FINANCE

 It is regarded as the life blood of a business enterprise.

FINANCE

 It is a broad term that describes activities associated with banking,

leverage or debt, credit, capital markets, money, and investments.
FINANCE

 Basically, finance represents money management and the process of

acquiring needed funds.
BUSINESS FINANCE

 It is that business activity which concerns with the acquisition and

conversation of capital funds in meeting financial needs and overall
objectives of a business enterprise.
TYPES OF FINANCE
It includes the
Individual, Firms,
Business or
Private Finance Corporate Financial
activities to meet the
requirements.

It concerns with revenue and

disbursement of Government
such as Central Government,
Public Finance State Government and Semi-
Government Financial matters.
TYPES OF FINANCE
DEFINITION OF FINANCIAL MANAGEMENT

“It is concerned with the efficient use of an important

economic resource namely, capital funds.”
DEFINITION OF FINANCIAL MANAGEMENT

“It deals with procurement of funds and their effective

utilization in the business.”
DEFINITION OF FINANCIAL MANAGEMENT

“It is an application of general managerial principles to

the area of financial decision-making.”
DEFINITION OF FINANCIAL MANAGEMENT

“It is an area of financial decision-making, harmonizing

individual motives and enterprise goals.”
DEFINITION OF FINANCIAL MANAGEMENT

“It is the operational activity of a business that is

responsible for obtaining and effectively utilizing the
funds necessary for efficient operations.”
SCOPE OF FINANCIAL MANAGEMENT

Economics
Accounting
Production Management
Marketing
Human Resource
OBJECTIVES OF FINANCIAL MANAGEMENT

Profit Maximization
Wealth Maximization
APPROACHES TO FINANCIAL MANAGEMENT
FUNCTIONS OF FINANCIAL MANAGER

Forecasting Financial Requirements

Acquiring Necessary Capital
Investment Decision
Cash Management
Interrelation with Other Departments
IMPORTANCE OF FINANCIAL MANAGEMENT
Financial Planning
Acquisition of Funds
Proper Use of Funds
Financial Decision
Improve Profitability
Increase the Value of the Firm
Promotion Savings
THANK YOU!