The paper “ Mastering Budget and Cost Center Budgets, Implementation of Financial Management Approaches” is a meaningful example of the assignment on finance & accounting. Financial management is the process by which a company manages its funds in its daily operations. Financial management means, organizing, planning, directing, and controlling the financial activities such as procurement and utilization of funds of the enterprise (Allen, et al, 2013). It means applying general management principles to financial resources of the enterprise to generate profits and to sustain the organization’ s cash flow. The organization makes investment decisions in fixed assets better referred to as capital budgeting.
The company may also make decisions on financial matters using current assets that are also part of the investment as working capital decisions. Financial decisions are made since the company has to raise finances to facilitate its operation (Brigham, and Ehrhardt, 2013). There are various sources of finances that an organization can use to channel its finances. This will depend on the type of source, cost of financing, period of financing, and the returns that are expected. Dividend decisions are involved in the financial management of an organization such that the finance manager has to be able to make decisions depending on the net profit distribution.
These profits are normally in two forms: dividends for shareholders and retained profits. Retained profits are the number of funds that have to be finalized which will depend upon expansion and diversification plans of the enterprise (Allen, et al, 2013). There are several objectives of financial management planning, this is generally concerned with procurement, allocation, and the control of financial resources. To ensure that the organization has a regular and adequate supply of funds to various operations. The aim of financial planning is also meant that there is optimum fund utilizationTo ensure there is safety on investment, funds should be invested in profitable ventures with high returns.
Allen Jr, E., Melone, J., Rosenbloom, J. and Mahoney, D., 2013. Retirement Plans: 401 (k) s, IRAs and Other Deferred Compensation Approaches. McGraw-Hill Higher Education.
Brigham, E. and Daves, P., 2012. Intermediate financial management. Cengage Learning.
Brigham, E. and Ehrhardt, M., 2013. Financial management: theory & practice. Cengage Learning.
Brigham, E. and Houston, J., 2011. Fundamentals of financial management. Cengage Learning.
DRURY, C.M., 2013. Management and cost accounting. Springer.
Kaplan, R.S. and Atkinson, A.A., 2015. Advanced management accounting. PHI Learning.