Financial Management

1.) Taking charge of the company’s financial policies and strategies, investments, capital
structures, and dividend policies.
- Financial managers must be able to formulate sound financial standing plans
that will communicate broad guidelines for their financial decisions and
strategies.
- These include, among others, typical financial policies that address the
organization’s investments, capital structures, and dividend policies.
- Investment policy covers the choice of product lines and capital projects.
Capital structure policy covers working capital for the balancing of assets and
liabilities and leverage policy for balancing long-term financing.
- Dividend policy considers the use of either a systematic pattern or earnings
retention or dividend distribution.
2.) Financial management and control.
- Makes sure that funds are properly utilized to provide for all the organization’s
needs.
- Project Management
- Makes sure that long-term projects are implemented according to
previously planned budgets and checks if these have yielded
forecasted cash returns
- Capital Management
- Cash, accounts receivable, and inventory management
- Cash Management
- Makes sure that there is enough cash balance that may be used for
their daily operating needs, that idle cash is invested through
marketable securities, and that proper cash control rules are instituted.
- Accounts receivable management
- Ensures the optimization of accounts receivable investments and the
formulation of sound credit evaluation and collection procedures.
- Inventory Management
- Determines inventory levels by making maximum use of trade-offs
between inventory carrying cost, ordering cost, and lost sales
opportunities; also, it institutes good stable inventory control
procedures.
- Fund Sources management
- Identifies short and long-term funds that may be available and transact
and keep watch of credit facilities with banks and other financial
institutions.
- Dividend policy implementation determines the form and amounts of
dividends and schedules their payments.
3.) Financial Planning
- Process of setting financial objectives and determining what should be done
to accomplish them.
- Financial forecasting
- Cash budgeting, profit planning, and balance sheet forecasting
- Financial analysis
 - Capital budgeting techniques, operating leverage analysis,
financial leverage analysis, and analysis of pricing costs.
- Financial performance evaluation
- Assessment of financial ratios to indicate the overall
performance of the organization, as well as the assessment of
market-wide financial indicators.
Information and Communication Technology Management
1.) Developing the organization’s hardware, software, and other computing and
communicating technology.
- Be ready to develop and adapt to new technology.
2.) Developing the organization’s management information system (MIS) tailored to the
needs of the firm’s units.
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3.) Encouraging e-commerce through Internet use.
- Business to business
- Use IT and web portals to link companies with members of their
supply chains or those dealing with their resource supplies.
- Business to customer
- Use IT and web portals but the link creed is one between the company
and its customers