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The Proper Goal Of The Financial Manager A to Z

The Goal of the Financial Manager is the establishment of an organization whose activities are conducted within a framework. The financial management department is therefore also managed within an organizational structure. Of course, this outline is based on the expected goals of the organization. And these written goals are worked by non-managers.

Goals of the organization – The goal of the financial manager is to achieve the objectives we will discuss now: lets see

Goal Of The Financial Manager

Goal Of The Financial Manager:

The financial manager has no goal of his own. There are strategies. Strategies, of course, depend on his decision. The financial manager assists in achieving the universally recognized objective of a firm, the overall economic welfare of the firm owner or owners, by performing it efficiently and efficiently by the financial manager.

According to various financiers, there are basically two different approaches to achieving the overall economic welfare objectives of firm owners.

  • i. Profit Maximization
  • ii. Wealth Maximization.

In order to achieve this goal, financial managers perform the following functions. Which identifies the source of capital:

  • a. Capital Collection
  • b. Capital Investment,
  • c. Capital Saving,
  • d. Taking measures to prevent financial distress and
  • e. bankruptcy and gradually increasing the growth rate etc.

The following is a long discussion of the two purposes:

i. Profit Maximization:

In addition to meeting the needs of different classes of society – people or other living beings, business organizations seek to protect the interests of owners and investors.

Economists divide this interest into two. Classical economists have recognized profit maximization as the main objective of the organization. Others say maximizing assets, some say maximizing profits is the organization’s short-term goal. In the long run, it encourages resource maximization. Financial managers take steps to implement and implement the organization’s investment decisions, financial decisions and dividend decisions for the purpose of maximizing profits.

According to IM Pandey, “Firms producing goods and services, may function in a market economy. Or in a government controlled economy. But firms in the market economy are expected to produce goods and services desired by society as efficiently as possible.”

The opposite of the market economy can be observed in the economy. Profit maximization is not the key here.

It is necessary to make a profit in a competitive market by providing products or services as per the demand at the lowest price for every member of the society.

Maybe that’s why the word profit has given rise to two different concepts in the business world.

  • A. Proprietary Concepts,
  • B. Managerial concept.

However, on profit maximization,

Weston and Brigham said, “The maximization of the firm’s net income is called profit maximization.”

Pandey said, “Profit maximization implies that a firm either produces maximum put for producing a given output. The underlying logic of profit maximization is efficiency.”

As a result, profit maximization is possible and profit is the best unit for measuring the efficiency of a firm. From the proprietary notion of profit, it is understood that the money received by the owners from the firm is Muna.

Here is the surplus production of the farm, which is the result of efficient and efficient use of the ingredients of production. Trade surplus production is seen as profitability.

In order to maximize the role and financing of the environment, the financial manager decides to invest in the most profitable alternative or the most profitable alternative project or property and to raise funds from the most profitable source for the implementation of the project and to make investment decisions. Stays.

  • 1. Reduce costs as much as possible,
  • 2. To ensure the highest quality of products or services,
  • 3. Creating additional demand. The following is a description of the materials.

1. A financial manager can reduce costs:

by maintaining the quality of materials. You can follow the Six R policy in raw material planning. For example

  • a. Right Raw Materials (Right Materials),
  • b. Right place,
  • c. Right Quantity s.
  • d. Right price.
  • e. Right time and &. Right Media.

It is important to maintain the quality of the product in a competitive market. If low quality raw materials and unskilled workers are hired in the name of cost reduction, profit maximization will not be possible, but the product may be expelled from the market.

2. To ensure the highest quality of goods or services:

To Ensure Most Qualitative Goods or Services to maximize profits, reduce costs as well as the quality of the product must be appropriate. In a free trade market, quality attracts the buyer more than the price of the product. So if you want to make maximum profit from survival in the market, you must ensure the quality of the product or service.

3. To Create Additional Demand:

This can be done by increasing various promotional activities and after sales service to create additional demand. It is also possible to create new demand by changing the product line, design, packaging etc. Buyer-consumer buying behavior for the product can be a guideline. Their behavior influences the pricing of products in many cases.

So a financial manager has to make the relevant decisions efficiently in order to create maximum profit for the company by providing the product or service. Profit maximization largely depends on its efficiency. When a financial manager sets his goal as profit maximization, he has to make decisions at different stages in the above manner and explain to the owner why profit maximization should be the firm’s goal.

In addition to presenting arguments for his argument, one has to devise techniques to maximize profits. In this context, Weston and Brigham’s views can be taken into account by a financial manager, “Profit maximization is the maximization of the firm’s profits.” Or, briefly discuss the goal of financing the business.

Scope of Financial Management:

The scope and scope of financial management can be measured by the scope of responsibility of the financial manager. “What a manager does is apply this definition of management to financial management.

In this topic we will briefly discussed Review the scope of financial management Or, highlight the scope and content of a business organization. Lets see-

The definition of financial management stands for what a financial manager does is financial management.

The scope of financial management is therefore broad or limited by the functions of the financial manager. The main job of a financial manager is to make efficient and effective decisions on investments, finances and dividends.

Apart from these, a financial manager is also involved in various day-to-day activities in his workplace. Where money or money is involved in various decisions or cooperation in decision making. These jobs are done by financial managers in all types of business, non-business, government and non-government organizations.

Therefore, it is a fact that the scope and scope of financial management is occupied by the functions of the financial manager. Therefore, if the answer to such a question is asked in the examination question paper, it will not be wrong to sort the answers by mentioning the functions of financial management. The functions of the financial manager are discussed in this chapter.

Qualities of a Financial Managers:

In this topic we will explained: Discuss the qualities of a financial manager. Discuss the qualities of a financial management. Or, what qualities should a good financial manager have? Lets see –

Qualities of a Financial Managers All the activities of a financial manager are mainly related to decision making. So he has to acquire skills. He also has to provide guidance to his colleagues and assistants for the implementation of his decisions. As a result, he has to acquire leadership qualities. All business activities take place for human welfare. So he also has to acquire human qualities. The organization makes or rejects any financial decision based on its analytical art – strategy and data.

1. Analytical qualities:

Various financial statements of the organization, investment proposals, alternative options, etc. need to be analyzed before making a decision on marriage. If such analysis is fruitful, the firm gains, but if it is not fruitful, the firm may face potential losses. Therefore, a financial manager has to acquire analytical qualities. Such as a.

  • a. To prepare Comparative Statement:

A comparative statement is prepared to determine the correlation between the details involved in running a business for timely and accurate financial decision making. These comparative details are one of the tools for decision making.

  • b. Analizing the Financial Statement:

Financial statement, proprietary statement and related miscellaneous footnotes. Acquiring the ability to judge and analyze them is extremely

  • c. Ratio Analysis:

Different types of ratios are used to interconnect between financial statements. Such as- current ratio, liability ownership, debtor rotation, etc. so the ratio analysis qualities are also very

2. Technical qualities:

A skilled financial manager needs to have the following practical skills.

Such as

  • a. General qualities and in order for a financial manager to be successful,
  • b. one has to possess some general qualities.
  • c. Such as the ability to formulate and implement financial policies of 2 organizations.
  • d. The ability to set financial goals consistent with monetary policy and the ability to create the right course of action to achieve the goals is essential to the hands-on knowledge of current capital management,
  • e. current assets and fixed asset management concepts.
  • f. It is also important to have professional skills on loans, leases, liability securities, etc. as financing.
  • g. Institutional and professional knowledge is required on all the activities related to preparation, analysis, presentation and audit of financial accounts.
  • h. Must have experience in various aspects of financial coordination and control.
  • i. Ethical responsibility towards the organization, the country and the work.
  • j. To maintain courtesy and honesty with colleagues, buyers, suppliers, lenders, shareholders, etc.

3. General quality:

  • a. There will be strong mental strength and self-confidence, perseverance, determination, strong desire, etc.
  • b. Must have the mentality to avoid business dishonesty and stepmotherly behavior towards competing organizations.
  • c. Must have individual qualities to work in groups and in different cultures or communities.
  • d. Must have proper and competent leadership qualities. Positive attitude,
  • e. financial transparency and coordination of units between different departments of the organization and all kinds of mental strength and mental qualities to manage and control the financial department individually.

After discussing the various qualities of a financial manager, it can be said that like other managers, one has to possess all the qualities associated with financial decision making. In order to acquire these qualities, various meetings, seminars, vocational training are required.

Related:

Definition of Finance Or Means of Financing: Financial Management.

Principles of Business Finance.

Top Two Types Of Finance.

Importance of Business Finance.

List of Careers in finance or Major Areas And Opportunities in Finance.

What is the Science of Money Called and Who Is the Financial Manager?

History of Financial Management.

What is Nature of Financial Management?

Discuss the Role of Financial Management

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