Role Of Financial Management In A Corporate Organization

This project is poised at X – raying the degree of “ the role of financial management in a corporate organization”. Making reference of Union Bank (nig) plc Enugu, Financial management is the management activities conceived with raising of capital, planning cash and credit requirements including the effective control of financial resources. Some thoughts were given to financial management to provide skilled planning, control and executive of financial activities. The because among the most crucial decisions of the firm are those which related to finance and therefore need to understand financial management which provides them with conceptual and analytical insights to make these decisions. The financial manager must take steps to ensure that the funds will actually be available and committed to the firm.
The financial manager is usually responsible for gathering and analyzing the relevant information, making forecast of profit level to estimate profits from future sales, the firm must be aware of current cost and likely changes in the ability of the firm to sell its product as planned.
The financial manager must measure the required return of this capital investment by answering this question. Does the level of return, offered adequately justify that of risk there in? He is required to know the rate of return that must be expected from the proposal before it is accepted.
The finance personnel meet with other officers of the firm and anticipate in making decision affecting the current and future utilization of fund resources. The manager will discuss the total amount of assets needed by the firm to carryout its operations and determine the composition on needs. They identity ways to use the existing assets more effectively and there by reducing waste and needed expenses.
This decision making role cause liquidity and profitability, this is so because converting equipment to cash improves liquidity while reduction of cost improve profitability.
The role of financial manager in the management of funds available for the firm. The funds include cash held by the firm, money borrowed and money gained from the purchase of common stock and preferred stocks.
The financial manager is responsible for having sufficient funds for the firm to conduct its business and pay its bill s and a lot of money to finance receivables and inventions making arrangement for the purchase of assets and identity sources of long term financing. In fact, this project aimed at the aforementioned roles of financial manager in any organization to foster his performance in the following.
Forecasting and profit planning and control financial ration analysis, working capital policy, stocks, cash receivable, marketable severities, financial risk and structure, medium short and long term sources of funds, valuation of stocks and cost of capital, internal financial dividend policy and techniques for capital investment analysis.
The issue of whether these stated role of financial manager are executed or not in a case to be investigated by the researcher from the following perspective:
٭ Budgeting and investment analysis
٭ Management of short, medium, and long term financing
٭ Financial ratio and planning
٭ Managing the financial structure.
The researchers will analysis the financial concepts using analytical tools and techniques obtained from the organizational answers received from the questionnaires to unfold the financial mangers decisions on financial matters.
It is hoped that this project will attain the standard required of it by all the examining bodies and also satisfy the curiosity of the general reading public who may have the desire to become acquainted