Planning Environment in Financial Management

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Planning Environment in Financial Management

Planning Environment in Financial Management

CA / By Shilpa Yadav | 2021-09-02

Involves

Analyzing the Financial flows of a company
Fore costing consequences of various investment
Financial and divided Decision
weighting (measure) the effects of various alternatives
The aim of financial planning should full fill the needs of company

Functions of Financial Management

Determine the Financial needs
Determining sources f funds
Financial Analysis– The financial management is required to measure its liquidity, determine its profitability and assets overall performances in financial term.
Optimal capital structure– The Finance Manger has to establish on optimum capital structure and ensure the maximum rate of return on investment.
Cost volume Profit analysis– The finance Manger has to ensure that the income of firm should cover its variable cost and fixed cost. The Finance manger has to find out BEF
Profit planning & Control – It is a Dual Function Which enables management to determine as cost it has incurred and revenue it has earned during a particular period
Fixed Assets management– Finance manager has to essence that these assets should give the reasonable return of the investment
Capital budgeting
Working capital management
Divided Policies

Sources of Finance

Business firms need finance mainly for two purposes

To fund the long term decisions
To meet the working Capital Requirement

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