Functions of Financial Management

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Financial Management has a lot to do with the duties of the financial manager working in a business. Their function can come in two approaches; one being an executive finance function which involved mainly decisions, the second is the routine finance function. These could be such things as supervision of cash receipts, safeguarding of cash balances, and custody of valuable documents, mechanical details of financing, record, reporting to top management and supervising fixed and current assets. For a financial manager, it is important to approve or reject the lines of credit, and commercial, real estate, and personal loans. There is so much that a financial manager is responsible for, and the decisions they make can also make or break a bank. It’s important for them to develop and analyze information to insure that the company is doing well and can finance another loan as well as look as making decisions to ensure company growth and profitability. The major goal of a financial manager should be to maximize the value per share of existing stock. To maximize value per share, also motivates the capital-budgeting decision rules, and firms will then only accept projects if they add value to the firm. Our Chief Financial Officer is Kenneth S Avner who is stationed out of Illinois. Ken Avner is responsible for decision-making processes related to product pricing, experience analysis, financial strategy, financial reporting, budgets, cost accounting, tax, receivables, disbursements, underwriting, travel, administrative services and procurement. I am not sure how all this comes down to New Mexico. I do see that our New Mexico President, Kurt Shipley has duties of financial management in the New Mexico Region, who I might add, is a certified...

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... profitability being a goal in the industry, the function of rivalry among companies will exist. I found that financial management is a huge benefit in any company whether it is large or small. A company that thinks that they can do without it must not have their company’s interests in mind at all. From balance sheets to pro forma balance sheets, every company needs them.

Works Cited

HubPages Inc. (2013). Goal of a Financial Manager. Retrieved May 31, 2013 from http://nims.hubpages.com/hub/Goal-of-the-Financial-Manager

Standard & Poors Financial Services. (2012). Ratings Direct. Retrieved June 3, 2013 from http://www.hcsc.com/pdf/standard_poors_report.pdf

The Brattle Group, Inc. (2013). Project Evaluation and Capital Budgeting. Retrieved June 1, 2013 from http://www.brattle.com/AreasExpertise/FunctionalPracticeAreas/Expertise.asp?ExpertiseID=111&SubItemID=206

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