Certificate in Financial Management

Financial Management

About Financial Management
Financial Management means planning, organizing, directing, and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to the financial resources of the enterprise.

Functions of Financial Management
•    Estimation of capital requirements: A finance manager has to make estimation with regards to the capital requirements of the company. This will depend upon expected costs and profits and future programs and policies of concern. Estimations have to be made in an adequate manner which increases earning capacity of the enterprise.
•    Determination of capital composition: Once the estimation has been made, the capital structure has to be decided. This involves short-term and long-term debt equity analysis. This will depend upon the proportion of equity capital a company is possessing and additional funds which have to be raised from outside parties.
•    Choice of sources of funds
•    Investment of funds: The finance manager has to decide to allocate funds into profitable ventures so that there is safety on investment and regular returns are possible.
•    Disposal of surplus: The net profits decision has to be made by the finance manager.
•    Management of cash: The finance manager has to make decisions with regard to cash management. Cash is required for many purposes like payment of wages and salaries, payment of electricity and water bills, payment to creditors, meeting current liabilities, maintenance of enough stock, purchase of raw materials, etc.
•    Financial controls: The finance manager has not only to plan, procure and utilize the funds but he also has to exercise control over finances. This can be done through many techniques like ratio analysis, financial forecasting, cost and profit control, etc.

Why is Financial Management important?
This form of management is important for various reasons. Take a look at some of these reasons:
•    Helps organizations in financial planning;
•    Assists organizations in the planning and acquisition of funds;
•    Helps organizations in effectively utilizing and allocating the funds received or acquired;
•    Assists organizations in making critical financial decisions;
•    Helps in improving the profitability of organizations;
•    Increases the overall value of the firms or organizations;
•    Provides economic stability;
•    Encourages employees to save money, which helps them in personal financial planning.


Who should take the Financial Management Exam?
•    Accounting or finance professionals
•    Business owners or Entrepreneurs
•    Anyone who wants to assess their financial management skills
•    Accounting or finance managers and senior executives
•    Financial consultants
•    Professionals working in outsourced companies responsible for financial management
•    Students

Financial Management Certification Course Outline

1. Overview
2. Financial Statements
3. Cash Flow
4. Fixed Capital Analysis
5. Capital Structure and Dividend Policy
6. Working Capital Analysis
7. Inventory Management
8. Cash Management Analysis
9. Foreign Exchange Orientation
10. Commodity Exchange
11. Financial Risk Management