It cover up the administration and maintenance of financial assets. Apart from that it covers the process of identifying and managing risks. The primary concern of this process is the assessment rather than the techniques of financial quantification. A financial manager monitors the available data to calculate the performance of enterprises. This is an interdisciplinary approach that takes over from both managerial accounting and corporate finance.
Many people may thought that starting a business to be very easy with, a product or service to sell and having enough knowledge in marketing them properly, once they satisfy with these things they think that they are ready to go. However, starting a business requires more than just products or services and simple knowledge. It takes much more if you want to make your business grow. At the initial stage of the business, owners or shareholders will instantly be faced with financial matters that require financial decisions. Questions such as what are all the assets to invest in and where to get the cash needed for such investments would require financial know-how. And as the business venture thrives, shareholders should manage daily financial issues and make long-term financial decisions. All of this definitely requires knowledge in the area of financial management rather than just a little knowledge in business.
While the ultimate goal of this process is “maximizing stockholder’s wealth,” the path leading to this ultimate goal is paved with other small goals. Goals like day-to-day lucrativeness and properly managing daily finances are generally regarded as short-term goals, and achieving these goals belongs to the realm of short-term financial management. Aside from these, financial management also manage other long-term goals, including business profitability and viability. Achieving the goals of financial management either the short term or long term requires a lot of processes and activities . These usually encompasses cash management, financial risk management, financial accounting, managerial accounting, and others.
Now, these may act like a multitude of tasks, especially for businessmen who are only managing small businesses. However, handling all of these tasks may become easier with the available financial management software products . Alternatively, businessmen could avail themselves as a financial manager or seek the aid of companies which providing financial management services.
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