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Getting a business started may be an easy venture for some people but in truth, this investment involves more than just getting financial capital and putting your product to the market. Business requires investment in products/ services, knowledgeable staff and many other factors if growth is to be seen in the future
At the start, it is all about finding finances to purchase assets and other financial decisions to be made by the owners, managers and/or business share holders. Normally such decisions include investing in technical persons or financial know how, managing daily incomes and finances, making effective long term decisions –all in the interest of getting the business into steady growth stage. Many of these important business decisions require very knowledgeable persons who are experts in the field of financial management and business investments.
Financial Management can thus be defined as the process of making important financial decisions to increase the profits or financial wealth of a company. Corporate finance, Managerial finance and Business Finance are terms used to denote financial management in other countries.
The fundamental goal of financial management is clearly to organize financial resources and thus increase the wealth of the company. This mission always comes underlined with short term objectives such as managing day to day financial cash flows and daily profits. Achieve great results in these short term goals is an indicator to meeting long term objectives that include business feasibility and profitability.
Some of the duties of financial managers include cash management, financial accounting, risk management in finances, managerial accounting and financial investment among other roles which all focus on meeting the short and long term financial objectives on a company.
The good news for small business enterprises and managers is that there are several financial management products and software to assist in making important financial decisions for the business. Some business companies have services of professional business and financial managers available on hire while private individuals with knowledge in financial management can do the same work under specific terms and contracts.
Author: Sandra Nans