Leverage And Its Types (2)

Finance ManagementThe Masters in Financial Management has recently been recognised by the CFA Institute in their University Recognition Program. Executive functions of financial management are raising the Required funds Funds can be raised from various sources like issue of shares, debentures, fixed deposits, bonds, borrowings, etc. The finance executive has to decide the proportion in which the different sources should be raised. Executive functions of financial management are assessing the total capital requirement. The basic responsibility of the financial executive is to prepare the monetary plan of the company. Executive functions of financial management are estimating the cost of capital.

To avoid over-capitalization and under-capitalization the finance executive has to access these needs of funds properly. The finance executive has to ensure that the company maintain adequate working capital. The finance executive has to ensure that cash is utilized as per the plan and in case of any deviation, corrective measures should be taken. In order to reduce the tax liability the finance executive has to properly-study the schemes and then invests accordingly.

Evaluating the financial performance is vital executive functions of financial management. For evaluation, the finance executive may use techniques like ratio analysis, fund flow statements, etc. The finance executive helps the management in decision-making as he is well experienced with the financial aspects of the company. Routine functions of financial management are to preserving of securities, insurance policies and other valuable papers. To understand the basics of personal finance , check out some of the commonly used financial terms and definitions.

After understanding the basics of finance management, you can use the available funds systematically to get all the required things properly done. Knowledge of finance is not only required by Financial Managers or working professionals, but is a required and most basic learning for any individual. It does not matter whether you own a business, a working professional, a work-from-home lady or a housewife, knowledge of finance will always help you both in your work as well as in personal life.Finance Management

Depreciation: It is a term used for things whose financial value decreases over time. Liquidity: Liquidity is an important term to understand even in personal finance. These are some of the basic terms used in personal finance which will help you to understand and manage your finances effectively. These terms make for a great starting point on one’s journey to understanding finance better. It is actually necessary to first know the actual meanings of different financial terms. There are some really great software programs out there for budgeting, debt management and building wealth. But the software goes beyond creating checks and also provides bookkeeping features.

Finance Management