Financial Management

Financial management is an activity of planning, budgeting, inspection, management, control, search and storage of funds owned by an organization or company.

The concept of  financial management which involves decisions about investments, financing business activities and the distribution of dividends to the company.
Financial management objectives of the company itself is maximizing corporate value as reflected in share value. Thus if one day the company is sold then the price can be set as high as possible.

Company Value (V) = Debt (D) + Equity (E)
If the debt (D) assumed to be fixed, the Company Value (V) rises, and Equity Rise (E) then the price per share also increased, then the shareholders are happy because the added prosperity.

Maximize the value of different enterprises by increasing corporate profits. If manjemen short-sighted companies, it will seek big profits now by selling products with high prices but low quality to keep costs (Strategies Hit and Run), but in future years will decrease even lost profits because the company will lose consumers. Shareholders clearly do not want prosperity for a moment with the cost of long-term prosperity. But to maximize prosperity pemegeng shares not only gains but also are considered risk factors.

Financial Management Functions:
   1. Financial Planning  

       Make a plan and pengeluaraan income and other activities for a certain period 
   2. Financial Budgeting  
       Follow-up of financial planning to make a detailed expenditure and income
 3. Financial Management  
     Using company funds to maximize the funds available with a variety of ways 
 4. Finance Search  
     Finding and exploiting existing funding sources for operational activities of the company
 5. Finance Storage  
   Companies to raise funds and save the funds safely
  6. Financial Control  
      Evaluation and improvement of finances and financial systems in the enterprise
  7. Audit  
      Conduct internal audits of the financial companies that exist to prevent irregularities. 

Main Tasks of Financial Management 
Basic tasks are performed by a financial manager in general are:

1. Getting Funds Company
2. Using Company Funds
3. Dividing Profit / Profit Companies

Scope of Financial Management: 

 1. Raising of Found (Decision Spending) 

• Internal financing
• External financing

2. Investment Decisions (Allocationn of Found) 

• Working Capital
• Fixed Capital

3. Dividend Decision

• Retained earning
• Dividend Payout