Managing Finances In An Effort To Success

Definition of Financial Management has developed from the notion of management that prioritizes activity obtain funds only until that promotes the activity of obtaining and use of funds and management of assets. Financial management is the whole activity or activities of the company in the context of the use and allocation of company funds efficiently.

The company's goal is the maximization of the welfare of the owners of the company. The number of shares owned by showing proof of ownership in the company. Shareholder wealth is shown by the market price of the company, which is also a reflection of the investment decision, financing and asset management. the success of a business decision based on the assessed impact on stock prices. Financial management is the management of the financial functions. While the function of finance is the main activity that must be done to manage finances in a relationship by those responsible in the particular field. The function of financial management is the use of funds and placing funds.

As I mentioned earlier beginning to see some of the above understanding, understanding of financial management is simply a process in corporate finance activities or family management which starts from obtaining funds and how to use them. Its use should be on the mark, efficient so that the company's financial objectives that have been defined in the planning that can be realized. Financial management is not just the same accounting records. Financial management is an important part and can not be considered as a separate activity that is part of the work of financial people. To see farther and more clearly, you can follow so that your financial management not wrong in using it.

In principle this consistency, a system as well as the company's financial policy is to be consistent, do not change from period to period, but keep in mind that the financial system does not mean there should be an adjustment if there is a significant change within the company. Financial inconsistent approach could be a sign that no manipulation on the financial management of the company.

Management is a science in carrying out activities of the organization or company. Event organizing company activities can include which also includes action planning, organizing, managing and monitoring covering all its resources to achieve the desired goals or objectives. For instance if the organizational form of the company, the objectives are clear, which is looking for profit as much as possible for the prosperity of the owner.

Scope of strategy formulation includes new objects that will be done, the object of the business to be ditingggalkan, allocate resources either financial or non-financial, to decide whether we need a development activity or product diversification, decided the domestic market or internationally, it takes a merger or acquisition or not, dodge of the company's acquisition by a competitor. because no company has unlimited resources, then a strategy must have the courage to decide an alternative strategy that can have a positive impact is best in order to give maximum benefit for the company. A strategy should give a comparative advantage and could ultimately provide a competitive advantage in the long run, it must be important for management strategies.