GRADUATE SCHOOL

MASTER OF ARTS IN EDUCATION

Major: Educational Management
FINANCIAL MANAGEMENT

FINANCIAL MANAGEMENT
By collecting funds from different sources and then investing them in various types of properties,
such as plants, houses, equipment, automobiles, etc., a business entity seeks to achieve its goals.
Financial management, by scientific decision-making, controls the assets. Financial management needs to
consider the financial system under which these options exist in order to make correct decisions. Financial
managers would also be able to evaluate the financial details in order to forecast potential future outcomes
and to prepare their planned course of action more carefully.

What is Financial Management? Financial Managements is a strategic system about purchasing,

investment, and wealth management focused on accounting and economic theory. Investment, funding and
allocation of benefit management are subject to certain overall objective. Financial management, according
to financial and regulatory laws and regulation. In financial management, by collecting funds from different
sources and then investing them in various types of properties, such as equipment. Financial management,
by scientific decision-making, controls the funds. Financial management needs to consider the financial
system under which these options exist in order to make correct decisions. Financial management, with
some overall objective in mind, is concerned with the acquisition (investment), financing (arranging funds),
and management of assets. Investment decisions start with the determination of the school's total amount
of assets needed and the determination of the school's cash value. Financial management is an internal
component of the organization's overall management and not a feature of employees. It is not only limited
to the method of fund raising, but also includes the use of funds and the control of their use. In order to
increase the profit of the company, the finance role is concerned with the method of acquiring an effective
use of the funds of a business system. Financial management offers ways to accomplish targets and goals
in an enterprise.

For legal bases in Financial Management – according to DO 60 s., 2016 or the Implementation of
the Financial Management Operations Manual and Orientation of DepEd Financial Management Staff at
the Regional, Division, and School Levels states that the Department of Education (DepEd) issues the
following policy guidelines for the adoption and utilization of the Financial Management Operations Manual
(FMOM) for all financial transactions at all levels of the Department. This is to ensure standard and uniform
application of rules and processes in financial management operations, as prescribed by governing
regulations for (i) budget; (ii) accounting; (iii) procurement; and (iv) asset management. Through this
strategy, DepEd acknowledges the value of its financial management staff's continued professional growth
as agents of change and of financial reform.

The application of the concepts of general management to the finance feature includes financial
management. Such positions impact the activities of other main sector or organization functional areas,
such as marketing development and employees. The overall sustainability of the company is thus
accomplished through its financial activities. According to Mock, Schultz and Schuckectat, the financial
management refers to the application of skills in the manipulation, use and control of funds. And also,
according to Hoagland, the financial management deals with how the corporation obtains the funds and hot
it is uses them. Financial management can also be characterized as that part of management that is
primarily linked to the most economical way of raising or acquiring the funds for the business or company,
using those funds as profitably as possible, planning the future investment of those funds for a given risk
level and managing the current output plus future development by adopting budgeting of funds.

The key goals of financial management are to coordinate adequate resources to satisfy the
enterprise's short-term long-term requirements. To optimize profitability, these funds are procured at a
minimal rate. (i) Estimating the Financial Requirements: The first duty of a company's finance manager is to
estimate his business's short-term and long-term financial requirements. To this end, he will prepare a
financial plan for the present as well as the future. It will be important to assess the financing needed for the

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acquisition of fixed assets as well as the needs for working capital. Estimates should be based on sound
financial standards in order to ensure that the funds available to the organization are neither insufficient nor
excessive. (ii) Determining the Capital Structure: The finance executives have to decide on the composition
of capital, after estimating the financial requirements. The composition of the capital refers to the form and
proportion of the various securities for raising funds. It should be determined, after determining the amount
of funds required, the form of securities should be raised. Finance managers must assess the relative
proportions of the risk capital of the owner and lent capital, along with the short-term and long-term debt
equity ratios. The cost of raising funds should be related to a decision on different sources of funds. A
significant decision that affects a company's short-term and long-term financial planning is a decision about
the form of securities to be used and the proportion in which they should be used. (iii) Choice of Sources of
Finance: A suitable source of finance is chosen after the planning of a capital structure. Different sources
from which funds can be raised include: debenture holders of lenders, banks and other financial institutions
and government deposits, etc. Each source or method of finance must be evaluated by the Finance
Executive and the best source must be chosen, taking into account the different factors. The need, intent,
goal, cost involved may be factors influencing the selection of an appropriate source of financing, for
example, if short-term financing is needed then banks, public deposits and financial institutions may be
appropriate, and share capital and debentures may be useful for long-term financial requirements. (iv)
Implementation of Financial Control: An effective financial management system involves the use of different
device controls. (i) Return on investment (ii) Budgetary management (iii) Expense control (iv) Break Even
analysis (v) Ratio analysis are the commonly adopted financial control devices. The Finance Manager's use
of different management strategies can assist him in assessing performance in various areas and taking
corrective action whenever appropriate. It is widely understood that financial accounting is part of general
financial management. Management in general can be described as an economic production management
system that includes a collection of governance principles, processes, forms and techniques.

According to the Impact on Financial Management on Innovation (Рan-European University, Faculty

of Economics and Business, Tematínska 10, 851 05, Bratislava, Slovakia); Financial management and
controlling plays a significant role in the overall performance of businesses. In this paper, the significance
financial management is assessed with respect to innovation. In order to address the high market
demands, companies are required to act quickly and adequately to meet the changing demands of
consumers because of the increasing competition in the dynamically growing industry.

Based on the study of Babar Zaheer Butt, Ahmed Imran Hunjra and Kashif-Ur-Rehman entitled,
Financial Management Practices and their Impact on Organizational Performances that capital structure
decisions, dividend policy, investment appraisal techniques, working capital and financial performance
assessment all have positive and significant impact on organization performance. A business may have
different aims, but a firm's aim is to maximize the wealth of the owners of the company. We may therefore
conclude that the enhancement of shareholder value is the one mission that constantly guides all corporate
decisions and actions or a company's goal is to maximize the value of shareholders. This maximization of
profit from a long-term point of view can be accomplished. Where financial goals can be expressed as the
investment decisions, the financing decisions, and the dividend decisions. Investment decisions, this is the
decision that is most important. The most important factor is capital spending, i.e., the allocation of capital
to investment proposals, the advantages of which are to be realized in the future. As potential advantages
are not established with certainty, risk is involved in the investment proposals. Therefore, these should be
measured in relation to anticipated return and risk. In order to determine the acceptable necessary rate of
return on the investment, considerable attention is given. Financing decisions, the best funding combination
or capital structure must be decided by the Finance Manager. An optimal combination of funding is one that
will increase the stock price per share. In relation to the overall value of the company, funding decisions are
made. The amount of profits paid to shareholders in cash dividends, stock dividends and splits, and the
repurchase of shares are included in the dividend decision. A financial manager's main responsibility is to
assess organizational effectiveness through proper allocation, procurement and management.

The key role of financial management is to ensure that when appropriate, the company must have
sufficient funds to satisfy financial obligations and to take advantage of investment opportunities. A detailed
analysis is carried out on the 'flow of funds' in order to achieve this aim, i.e., a declaration of funds
requirement specifying the amount of funds required and at what time. The secret to success is sound
financial planning. Their aim must be to effectively and efficiently use the resources available. It is up to
management to consider the resources that assist them in financial management. Financial management is
an organic function of any business. In order to acquire physical resources, to carry out manufacturing
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activities and other business operations, to pay compensation to vendors, etc., every company needs
funds. Around financial accounting, there are several hypotheses. Some experts agree that financial
management is all about supplying the funds which an organization wants on the most desirable terms for
keeping in mind its goals. It must also ensure that revenues sufficiently compensate for the costs and risks
incurred by the undertaking. Many companies can easily raise capital in a developed market. The real
challenge, however is efficient capital use by efficient financial planning and control. The importance of
financial management is the following: In financial planning, it gives guidance; It assists in the procurement
of funds from various sources; It helps to spend an adequate number of funds; This boost organizational
effectiveness; It eliminates output delays; and it guarantees the proper use of funds.

In general, it includes the development and execution of financial principles that motivate an
organization to achieve its primary objective, which is to increase the company's value. In addition, debt
financing, cash flow control, as well as data collection and analysis to make sound decisions are part of
financial management.