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The management of funds in such a way that it achieves the goals of the organisation is known as financial management. It is a concept which is directly connected with the top management. There are many ways of defining financial management. We ensure better understanding to the students who are in need of finance & accounting management homework help.
Objectives of managing the finance
Let’s discuss some important objectives of Financial Management.
- When Marginal cost is same as the marginal revenue, maximisation of profit occurs. This is what can be said as the chief objective of financial management.
- Financial decisions are taken by the financial manager and his decisions leads to the success of a company and a wrong decision may make the company suffer.
- Appropriate cash flow is the short-run objective of financial management.
- Minimising capital cost is also important and helps in earning more profit.
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What is the scope of Financial Management?
- To know the requirement of funds.
- To determine the capital structure.
- To plan the investment well.
What do you mean by Accounting Management?
The practical application of the tools for controlling the fiscal health of an organisation is called Accounting Management. This is important at the time of preparing financial reports for decision making. Under this management maintenance of bank accounts, financial statements preparation, analysis of cash flow as well as financial performance is involved.
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Areas of accounting management
The practice of accounting management covers the following three areas-
- Strategic management
- Risk management
- Performance management
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What is the role of a Management Accountant?
They have a dual reporting responsibility. Every modern corporation now a days has management accountants. They manage the business team as well as reports to the finance organisation. They prepare certain financial reports, also reconcile them and analyses the risk. In short, they help determine the success of the business. To conclude we can say they analyse the following-
- Margin
- Constraint
- Capital budgeting
- Trend
- Product costing
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