The Importance Of Financial Function In The Company

The importance of financial function in the company

Introduction.

The operation of a company can be defined in a series of steps such as marketing, production, human talent and finance. All these activities have the main function of operating the company and in the end to maximize the value of a company. The function of finance in the company carries out marketing, production, personal and clear finances.

Developing.

In the marketing, the need for the customer must. The basic financial objective is the increase in the wealth of the entrepreneur, the financial situation of the company has its primary point in the value, that is, the type of assets that the company has and the possible commercial value.

Investment decisions take into account these aspects: volume of assets that you want to maintain, the term of credit sales for customers, inventory and growth of the company. The financial function is then the one that defines how the company’s money will be used, and its objective is to obtain the greatest performance of monetary goods as I mentioned at the beginning. But this maximization of utility is sought in the long term. Cash flow is important to know that the company can deal with its debts, working capital must be essential for this company to continue operating.

The financial administration deals with obtaining goods and managing them depending on the goal that the company has. The increase in profits then improves conditions as it can be invested and launched more economic activities and creates awareness in social responsibility.

That is why we observe lists of companies that meet the social responsibility requirements that seek to take care of the environment, work stress, working mothers, education, SMEs and so on.

Everything that the employer can plan needs a financial administrator to be able to make decisions. Corporate finances study and evaluate assets, focus on how companies can create value. Finance then also manage financial risk, and their premises are to increase the value of the contributions created to maximize market value. The commitments are first and therefore money must go through suppliers, employees, state, creditors and shareholders, etc. After complying with the commitments there must be utilities and if this happens it can be said that the company is economically sustainable.

Sustainable finances have three cases: that the company generates value, that the company is socially sustainable, that it has social responsibility. For example, Coca-Cola gives a message that is responsible with the society where it is sold, but the product itself is high in calories, sugars, etc. However, it has ecological sustainability foundations and programs in its advertisements such as the consumer educa to put the garbage in place, promote social and family well -being with coexistence, etc.

Conclusions.

In the end the finance are real because the numbers of a company are raw and real. Only a small percentage of companies are still in the market thanks to finances. Entrepreneurs always have an idea, they begin to sell, and if in the first 30 days working capital then the company bankrupt. Working capital investment is vital, if you have this same performance. All great performance has a great risk, and must be controlled, to continue on the market.

Entrepreneurs must seek profitability. Fund flows are going to project the company, not to suffer that risk. The new entrepreneurs should know what we are going to invest, where we are going to get the money and how much we are going to stay. These three decisions must have compatibility with our business. The best business can be maintained if we pay attention to the financial function in our company.