Health Care Budget Paper
Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds for an organization. It means applying general management principles to financial resources of the enterprise or organization. The scope of financial management can cut across a wide range of the organizations departments and can involve investment decisions including investment in fixed assets. Investment in current assets is also a part of investment decisions called working capital decisions. Financial management also involves making financial decisions. These relate to the raising of finance from various resources which will depend upon decision on type of source, period of financing, cost of financing and the returns thereby. Dividend decisions are also part of financial management. The finance manager has to take decision with regards to the net profit distribution. Financial management is generally concerned with procurement, allocation and control of financial resources of a concern. The objectives can be to ensure regular and adequate supply of funds to different departments of the organization, to ensure adequate returns to the shareholders which will depend upon the earning capacity, market price of the share, expectations of the shareholders, to ensure optimum funds utilization. Once the funds are procured, they should be utilized in maximum possible way at least cost. Also financial managers ensure safety on investment making sure funds should be invested in safe ventures so that adequate rate of return can be achieved. Finally they also plan a sound capital structure. There should be sound and fair composition of capital so that a balance is maintained between debt and equity capital.
FINANCIAL MANAGEMENT PRACTICES EFFECTIVE IN CREATING AND MONITORING AN OPERATING BUDGET:
Certain Financial management practices have shown a considerable amount of success in the...
References: 1. Financial Management- meaning, objectives and function. Retrieved from: http://www.managementstudyguide.com/financial-management.htm
2. Best Practices: Developing Budgets. Retrieved from: http://www.inc.com/articles/2000/01/16379.html
3. Finkler, S.A., & Ward, D.M. (2006). Accounting Fundamentals for Health Care Management. Retrieved from The University of Phoenix eBook collection.
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