The essence of financial management as a science.

SECTION 1. Conceptual aspects of financial management.

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Topic 1. Goals, objectives, subject and methods of studying financial management

2. Goals and objectives of the course " Financial management»

One of the most important areas of reforming the domestic economy is the financial and credit sector, especially its links and sub-links, which are closely related to financial management, both at the state level and at the level of a particular enterprise. The need to change the system for managing financial resources and relations is caused, first of all, by the emerging opportunity for enterprises and entrepreneurs to independently make decisions in various areas of their activity. In this regard, it should be noted that the problems of managing finance, cash, credit resources are extremely wide and diverse, therefore, research in these areas is carried out by a wide range of specialists who have their own, sometimes different from others, understanding of the goals, objectives, objects and methods. financial management in enterprises.

It is obvious that in the last decade, the profession of a financial manager as a specialist in the field of financial management of an economic entity has become increasingly popular and in demand among company leaders. The reason for this is quite obvious: the financial flows at the enterprise make up its circulatory system, and how well this system functions, the results of its activities are so successful. Thus, financial management is gradually becoming the most relevant direction of management activity in an enterprise, and its development is interested as practical management tools, focusing on considering financial management as a science of managing an enterprise's finances, aimed at achieving its strategic and tactical goals. At present, the following can be distinguished characteristic features of the national school of financial management:

· The Russian school of financial management combines Western European pragmatism in specific financial calculations with the American conceptual approach to risk reduction;

· It is based on the idea of ​​complex interference of short-term and long-term phenomena of the life of an enterprise and considers these phenomena in their inextricable relationship;

· She began to master the areas of financial management that were not sufficiently studied abroad, such as the financial policy of an enterprise in conditions of inflation, the features of financial management in conditions of falling production and overcoming the crisis, etc.

· The Russian School of Financial Management has begun to identify the features of financial management of various business entities - banks, insurance companies, and various investment institutions.

When considering the essence of financial management, it is necessary, however, first of all to pay attention to the fact that it is necessary to draw clear boundaries between the concepts of "finance", "management" (or "management") and "financial management" (or "financial management"). Traditionally enterprise finance considered as "economic, monetary relations arising as a result of the movement of money and the cash flows formed on this basis and related to the functioning of the funds created at enterprises.

Financial management, in view of the foregoing, can be considered as a kind of apparatus or organizational subsystem engaged in the management of financial resources.

Immediately there is a need to answer the question: can financial management be considered a science or is it an art?

First of all, science is systematized knowledge. To what extent does financial management meet this criterion? It is rather difficult to answer this question, since there are different ideas about the essence of financial management and, as a result, various knowledge is systematized. AT general case activities related to financial management can be structured as follows:

1. General the financial analysis and planning

2. Providing the company with financial resources (management of sources of funds)

3. Distribution of financial resources (investment policy and asset management).

Within the framework of the first direction, a general assessment is carried out:

Company assets and sources of their financing;

the size and composition of the resources necessary to maintain the achieved economic potential of the company and expand its activities;

Sources of additional funding;

· systems of control over the state and efficiency of the use of financial resources.

The second direction involves a detailed assessment of:

· volume of required financial resources;

Forms of their presentation (long-term or short-term credit, cash);

degree of accessibility and time of presentation;

the cost of owning this type of resource;

• the risk associated with this source of funds;

The third direction provides for the analysis and evaluation of long-term and short-term investment decisions:

optimal transformation of financial resources into other types of resources (material, labor, monetary)

· expediency and efficiency of investments in fixed assets, their composition and structure;

optimality working capital;

efficiency of financial investments.

1. Organizational aspect, or creation of financial and legal conditions for financial management

2. Choice specific financial indicators profit and profitability as a criterion management decisions

3. Permanent monitoring of the effectiveness of any positive activity, in particular through the balance of income and expenses.

At the same time, considerable attention, according to other authors, should be paid to:

forecasting and planning;

investment and financial decisions;

coordination and management of financial flows

organization of interaction with capital markets

Thus, it can be stated that active work is underway to systematize knowledge related to financial management at enterprises, which is typical for a science that is in its infancy.

Science presupposes the existence of theories, which include a set of logically related statements. In order for this complex of forming theories to be characterized as a science, it must meet two criteria of K. Popper: verification and falsification

Verification is confirmation by practical verification of certain statements. Here the argument of pragmatists fully works - "practice is the criterion of truth." “Science,” wrote M. Blok, “will always seem to us inferior, if sooner or later it does not help us live better

Falsification is another criterion, the essence of which boils down to the fact that each theoretical statement, being confirmed by many facts, can never explain and thereby confirm all the facts.

Satisfying two criteria, our knowledge becomes scientific, but then some difficulties arise. Thus, it is usually assumed that every science has a goal, an object, and a method.

The purpose of studying financial management is to substantiate the patterns and objective trends in financial relationships on the basis of a theoretical and practical analysis of the financial management process of an enterprise. To achieve this goal, the following tasks are solved:

· Consideration of the theoretical content of financial management, and related concepts;

· Analysis of the interaction of various factors in the management of the total cost estimate of funds;

Formation of principles, methods and forms financial support entrepreneurial activity under the current state regulation and legal framework.

Identification and analysis of trends in the relationship of enterprises with government bodies authorities and management, financial and tax authorities, commercial banks, etc.

· Development of mechanisms for applying financial management methods in various organizational and legal forms.

Analysis of the factors regulating the total valuation funds involved in reproductive processes, and the total monetary capital of the enterprise.

· Definition functional duties financial managers of enterprises.

The object of study of financial management is the practical experience gained in the real sector of the economy, the management of financial resources and the formation of financial relations, as well as the mechanism for adapting theoretical knowledge to existing practice.

The history of the emergence of financial management

Financial management, as a science of finance, arose quite a long time ago, back in the West. But, it should be noted that, by right, the history of purposeful management of financial activities in enterprises began only in the 1850s.

Until that time, at all enterprises, the managers were people of practice who had a rather one-sided approach to the management of the economic and financial activities of the organization. In this regard, it was necessary to accumulate all the knowledge and capabilities of good practitioners with theoretical foundations.

Remark 1

Since 1860, financial management has become a separate scientific discipline based on theory and practice.

Financial management: basic concepts

Definition 1

Today, financial management is a scientific discipline that is necessary in the work of an enterprise for the implementation of a competent process of managing financial and economic activities.

The implementation of financial management in the company should be carried out by a financial manager - this is a person who has:

• special education;
• work experience;
• analytic mind;
• own all modern financial instruments to perform their duties.

Financial management methods

To achieve all the goals of financial management, companies resort to various methods:

1. forecasting method. This method assumes that the financial manager at the enterprise will keep a constant report on how the market situation is changing, what factors external environment can directly affect the activities of the enterprise, as well as forecasting changes in the internal environment by means of the impact of various factors on it: new management decisions, changing suppliers, increasing labor productivity, etc. It is also the responsibility of the manager to make forecasts based on collected information, forecasts can be both positive and negative, but, nevertheless, this is a reason for further action on the part of management to prevent negative consequences.
2. planning method. The financial manager at the enterprise, within the framework of financial management, must conduct planning, both financial and economic activity companies. Planning involves drawing up schedules and reports, for example, planning the volume of output by days, weeks, months, years. Planning of sales volumes also in the context of the year. Planning the main financial indicators of the company, also in the context of months, quarters, years.
3. method of taxation. Everyone knows that the tax system of our country makes constant changes to the tax legislation: the tax rate changes, the object of taxation, its accounting or individual tax indicators. All these changes in tax legislation lead to a change financial activities companies, most often tax changes have negative consequences for the company, as tax costs increase. The financial manager is called upon not only to monitor this situation, but also to implement new way and opportunities to reduce the cost of company taxes, such ways can be: switching to a different taxation regime, changing the company's tax base, using tax incentives, etc.
4. insurance method. AT modern conditions, risk is an obligatory element of the firm's work in the market. The risk can be expected by the company at any stage of its activity, and it is associated with a completely different field of activity. The main task of the financial manager is to reduce the risk or completely eliminate it at the stage of its occurrence. For this, the method of insurance is most often used. If the risk financial plan, then the manager uses Insurance companies as possible way cover for unexpected losses. Also, insurance is needed in any area of ​​the company's activity, for example, in production, more goods were released than planned, therefore, it is necessary to insure, find new channels for selling goods, etc.
5. lending method. This method allows the company to find additional reserves for the implementation of the planned activities. The development of the company involves a sufficiently large amount of financial resources, which, most likely, the company does not have. To implement the planned plans, the financial manager must use the lending method, but in this case, having calculated in advance all the likely outcomes of events on the loan, since this can significantly affect the financial policy of the company.
6. self-financing method. The financial manager must maintain a policy of self-financing of the enterprise, which is based on the fact that the company must have reserves to ensure a full-fledged uninterrupted production activities, which will allow in the future not to resort to lending, which will improve the financial background of the company and increase the final financial performance of the company.
7. pricing method. The financial manager also deals with pricing issues at the enterprise, one of the main issues on which the company's sales level and popularity in the market depend in the future. An incorrectly set price for a product will lead to a lot of problems: financial losses, loss of customers, production downtime, etc. Financial management is designed to manage the process of pricing and promotion of the company's products.
8. Method of depreciation of fixed assets. Financial management studies, analyzes and manages all financial, economic and accounting operations in an enterprise. The calculation of depreciation and the use of fixed assets of the company is also subject to the financial manager, he has the right and must monitor the process, set more effective terms for writing off fixed assets, choose the method of depreciation, etc.

In the management system of various aspects of the activity of any enterprise in modern conditions, the most complex and responsible link is financial management. The principles and methods of this management took shape in a specialized field of knowledge, called "financial management".

Management - from the English word "manage" - to manage. Therefore, financial management is financial management.

Financial management is a system of principles and methods for the development and implementation of management decisions related to the formation, distribution and use of the financial resources of the enterprise and the organization of the turnover of its funds.

Over the century of its existence, financial management has significantly expanded the range of problems studied - if at its inception it considered mainly the financial issues of creating new firms and companies, and subsequently - the management of financial investments and bankruptcy problems, now it includes almost all areas of financial management enterprises. A number of problems of financial management in recent years have received their in-depth development in new, relatively independent areas of knowledge - financial analysis, investment management, risk management, anti-crisis management.

2. Goals, objectives and functions of financial management.

There are several goals that a financial manager must achieve:

Avoid financial difficulties and bankruptcy.

Defeat your competitors.

Maximize sales volume and market sector.

Minimize costs. Maximize profit.

Maintain sustainable income growth.

These are just some of the goals we could list. Therefore, each of these possibilities presents problems that are the tasks of the financial manager.

For example, it is easy to increase a market sector or sales volume - it is enough to reduce prices or ease credit conditions. In the same way, we can always cut costs by forgoing things like R&D. We can avoid bankruptcy by never borrowing money or never taking risks.

Profit maximization would probably be the most common statement of the problem, but even that is not a very precise definition. Are we referring to this year's profit? If so, then actions such as postponing maintenance, not interfering with gradual destocking, and other short-term cost-cutting measures will increase profits in the present, but such activities are not necessarily desirable.

A profit maximization goal may refer to "final" or "average" profit, but it is still not clear what this means. First, do we mean accounting for net income or earnings per share? Secondly, what do we mean by "ultimate"?

The goals listed above are different, but tend to belong to two classes.

The first relates to profitability. . This goal includes sales volume, market segment and cost control, which applies, at least potentially, to various ways to generate or increase profits.

The second group, which includes bankruptcy avoidance, stability and security, refers in some way to risk control .

Unfortunately, these two types of goals contradict each other to some extent. The pursuit of profit usually involves some element of risk, so it is virtually impossible to maximize safety and profit at the same time. Therefore, we need a goal that simultaneously includes both factors.

The main goal of financial management is to ensure the maximization of the welfare of the owners of the enterprise in the current and prospective period.

As a rule, this goal receives a concrete expression in the provision maximizing the market value of the enterprise .

A special role is assigned to financial managers, who, as a rule, make decisions for the company's shareholders. Then, instead of listing the possible goals of a financial manager, we actually need to answer a more fundamental question: what is good decision financial management from the point of view of shareholders?

If we assume that shareholders buy shares to generate financial returns, then the answer is obvious: good decisions increase the value of a share, and bad decisions decrease it.

It follows from this provision that the financial manager acts in the best interests of shareholders, making decisions that increase the value of shares. The corresponding objective for the financial manager can then be stated quite simply: The objective of financial management is to maximize the present value of one share in the existing share capital.

Based on the goal above (maximizing the value of the shares), the obvious question is: what would be the appropriate goal if the firm has no shares to sell? Corporations are certainly not the only type of business, and in many corporations, shares rarely change hands, so it is difficult to determine the value of a share at any given time.

In the process of realizing its main goal, financial management is aimed at solving the following main tasks:

Ensuring the formation of sufficient financial resources in accordance with the tasks enterprise development in the upcoming period. This task is implemented by determining the total need for financial resources of the enterprise for the coming period, maximizing the volume of attracting own financial resources from internal sources, determining the feasibility of generating financial resources from borrowed funds.

Ensuring the most efficient use of the formed volume of financial resources in the context of the main activities of the enterprise. Optimization of the distribution of the formed volume of financial resources provides for the establishment of the necessary proportionality in their use for the purposes of production and social development enterprise, payment of the required level of income on invested capital to the owners of the enterprise, etc. In the process of production consumption of the formed financial resources in the context of the main activities of the enterprise, the strategic goals of its development and the possible level of return on investment should be taken into account.

Cash flow optimization. This problem is solved by effectively managing the enterprise's cash flows in the process of its cash circulation, ensuring synchronization of the volumes of receipts and expenditures of funds for certain periods, maintaining the necessary liquidity of its current assets. One of the results of such optimization is the minimization of the average balance of free cash assets, which reduces losses from their inefficient use and inflation.

Ensuring the constant financial balance of the enterprise in the process of its development. This balance is characterized high level financial stability and solvency of the enterprise at all stages of its development and is ensured by the formation of an optimal structure of capital and assets, effective proportions in the volume of formation of financial resources from various sources, a sufficient level of self-financing of investment needs.

Ensuring the maximization of the profit of the enterprise with the foreseen level of financial risk. Profit maximization is achieved through the effective management of the enterprise's assets, the involvement of borrowed funds in the economic turnover, and the choice of the most effective areas of activity. At the same time, in order to achieve the goals of economic development, the enterprise should strive to maximize not the balance sheet, but the net profit remaining at its disposal, which requires the implementation of an effective tax, depreciation and dividend policy. Solving this problem, it must be borne in mind that the maximization of the level of profit of the enterprise is achieved, as a rule, with a significant increase in the level of financial risks, since there is a direct relationship between these two indicators. Therefore, profit maximization should be ensured within the limits of acceptable financial risk, the specific level of which is set by the owners or managers of the enterprise, taking into account their financial mentality (as a rule, it depends on the age and amount of investments).

Ensuring the minimization of the level of financial risk at the expected level of profit. If the level of profit of the enterprise is set or planned in advance, an important task is to reduce the level of financial risk that ensures the receipt of this profit. Such minimization can be achieved by diversifying the types of activities, as well as the portfolio of financial investments; prevention and avoidance of certain financial risks, effective forms of their internal and external insurance.

All the considered tasks of financial management are closely interconnected, although some of them are of a multidirectional nature (for example, ensuring the maximization of the amount of profit while minimizing the level of financial risk; ensuring the formation of a sufficient amount of financial resources and a constant financial balance of the enterprise in the process of its development, etc. .). Therefore, in the process of financial management, individual tasks should be optimized among themselves for the most effective implementation of its main goal.

Financial management realizes its main goal and main tasks through the implementation of certain functions. These functions are divided into two main groups, determined by the complex content of financial management:

financial management functions as control system(the composition of these functions is generally typical for any type of management, although it must take into account its specifics);

functions of financial management as a special area of ​​enterprise management (the composition of these functions is determined by a specific object of financial management).

Consider the content of the main functions of financial management in the context of individual groups.

In the group of financial management functions as a control system the main ones are:

Development of the financial strategy of the enterprise. In the process of implementing this function, based on overall strategy economic development of the enterprise and market forecast financial market a system of goals and target indicators of financial activity for a long-term period is being formed; priority tasks are determined and the company's action policy is developed in the main directions of its financial development. However financial strategy enterprises are seen as an integral component general strategy of its economic development.

Formation of effective information systems that provide justification for alternative options for management decisions. In the process of implementing this function, the scope and content of the information needs of financial management should be determined; external and internal sources information that meets these needs; organized constant monitoring financial condition enterprises and financial market conditions.

Implementation of the analysis of various aspects of the financial activity of the enterprise. In the process of implementing this function, an express and in-depth analysis of individual financial transactions is carried out; financial results of individual subsidiaries, branches and "responsibility centers"; generalized results of the financial activity of the enterprise as a whole and in the context of its individual areas.

Implementation of planning the financial activities of the enterprise in its main areas. The implementation of this function of financial management is associated with the development of a system of current plans and operational budgets for the main areas of financial activity, various structural divisions of the enterprise as a whole. The basis of such planning is the developed financial enterprise strategy requiring specification at each stage of its development.

Implementation of effective control over the implementation of the adopted management decisions in the field of financial activities. The implementation of this function of financial management is associated with the creation of internal control systems at the enterprise, the division of control responsibilities of individual services and financial managers. It is possible to apply a system of incentives and sanctions in the context of managers and managers of individual structural divisions of the enterprise for the fulfillment or non-fulfillment of established financial targets, financial standards and targets.

In the group of financial management functions as special areas of enterprise management, the main ones are:

Asset Management.

control outside current assets(adequacy of fixed assets, depreciation rates, structure and volume of long-term financial investments);

management of current assets (avoid excess stocks, overdue and excessive receivables, maintain liquidity of funds);

optimization of the composition of assets.

Capital Management.

control own capital(the size of the authorized capital, on the one hand, is determined by legislation, on the other hand, by the capabilities and size of the enterprise, the ratio of the consumption fund and the social sulfur fund is also determined, on the one hand, by the amount of profit, on the other hand, by the goals and decisions of financial authorities, sources are not free);

borrowed capital (its structure, volume, depend on the decisions of the financial manager);

optimization of the capital structure (the total need for capital is determined to finance the formed enterprise assets, a system of measures is being developed to refinance capital in the most effective types assets).

Investment management.

management of real investments (assessment of the investment attractiveness of individual real projects and financial instruments and selection of the most effective of them;

portfolio (the choice of forms and structure of the investment portfolio.

In general, the functions of this management are the formation of the most important areas of investment activity of the enterprise and the choice of the most effective forms of investment financing.

Cash flow management. The functions of this management are the formation of incoming and outgoing cash flows of the enterprise, their synchronization in terms of volume and time for separate upcoming periods, and the effective use of the balance of temporarily free cash assets.

cash flow management for operating activities;

on investment;

on financial.

Financial risk management.

management of the composition of financial risks (the composition of financial risks inherent in the economic activity of this enterprise is revealed; an assessment of the level of these risks and the volume of possible financial losses associated with them in the context of individual operations and economic activity as a whole is carried out);

prevention (a system of measures is being formed to prevent and minimize individual financial risks);

insurance.

Anti-crisis financial management under the threat of bankruptcy. In the process of implementing this function, on the basis of constant monitoring of the financial condition of the enterprise, threats of its bankruptcy are diagnosed; the level of this threat is assessed; internal mechanisms of financial stabilization of the enterprise are used, and, if necessary, the directions and forms of its rehabilitation are substantiated.

insolvency management;

restoration of financial stability;

ensuring financial balance;

rehabilitation management.

The process of managing the financial activities of an enterprise in any organization is combined into a specific mechanism. The mechanism of financial management is a system of basic elements that regulate the process of development and implementation of management decisions in the field of financial activity of an enterprise. In addition to internal mechanisms, management decision-making is influenced by:

State normative-legal regulation of the financial activity of the enterprise. The adoption of laws and other regulations governing the financial activities of enterprises is one of the directions for the implementation of internal financial policy states. The legal and regulatory framework for this policy governs the financial activities of an enterprise in various forms.

Market mechanism for regulating the financial activity of an enterprise. Supply and demand form the price level, interest rates, quotes for individual financial instruments, reveal the average rate of return on capital, determine the system of liquidity of individual stock and monetary instruments. As market relations deepen, the role of the market mechanism for regulating the financial activity of an enterprise will increase.

The method of a simple (buh-coy) rate of return.

This method is based on the calculation of the ratio of the average net accounting for the period of the project life. profits and the average value of investments (costs of fixed and working capital) in the project. The project is selected with the greatest environments. boo. profit rate. Fundamentals. The advantage of this method is its ease of understanding, availability of information, and ease of calculation.

Method for calculating the payback period of the project.

The number of years required to fully recover the initial costs is calculated, i.e. the moment when the cash flow of income equals the sum of the cash flows of costs is determined. The project with the shortest payback period is selected. The method ignores the possibility of reinvesting income and the time value of money.

The discount method of project payback is also used - the period is determined after which the discounted cash flows of income will be equal to

Method of net present (current) value (NPV).

The net present value of a project is defined as the difference between the sum of the present values ​​of all the money. income streams and the sum of the present values ​​of all cash flow costs, i.e. as net cash flow from the project, reduced to present value. The discount factor is assumed to be equal to the average cost of capital. The project is approved if the net present value of the project is greater than zero. When considering a single project or choosing between independent projects, it is used as a method equivalent to the method of internal rate of return (see below); when choosing between mutually exclusive projects, it is used as a method that meets the main task of financial management - increasing the income of the owners of the enterprise.

Internal rate of return (IRR) method

All project revenues and costs are discounted to present value at a discount rate derived not from an externally determined average cost of capital, but from the internal rate of return of the project itself, which is defined as the rate of return at which the present value of the proceeds equals the present value of the costs, those. the net present value of the project is zero. The resulting net present value of the project is compared to the net present value of the costs. Projects are approved with an internal rate of return that exceeds the average cost of capital (taken as the minimum acceptable level of return). This method involves complex calculations and does not always highlight the most profitable project.

Each of the investment analysis methods. projects makes it possible to consider individual characteristics and features of the project. Most effective way evaluation and selection of investors. projects, it is necessary to recognize the integrated application of all the main methods in the analysis of each of the projects.

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Why study financial management?

Today, one of the main conditions for the stable functioning of any enterprise is a competently and correctly chosen business strategy. And financial management plays a key role in creating this strategy.

Essence of financial management

Financial management is a financial science that studies methods for the effective use of a company's own and borrowed capital, ways to obtain highest profit at the lowest risk, rapid capital gains. Financial management answers the question of how to easily and quickly turn an enterprise from uninteresting to attractive to investors.

This is a certain system of principles, forms and methods that is used to correctly regulate the financial activities of an enterprise. It is financial management that is responsible for making investment decisions and discovering for them financial sources. That is, by and large, it answers the questions of where to get the money and what to do with it. The relevance of the application of financial management is also due to the fact that modern economic realities and the requirements of the world market require constant development. Today successful business cannot stand still, it must grow, expand, find new ways of self-realization.

Goals and objectives of financial management

The main goal of financial management is to maximize the value of the enterprise by increasing capital.

Detailed Goals:

1. effective functioning and strengthening of positions in a competitive market;
2. prevention of company ruin and financial insolvency;
3. achieving market leadership and effective functioning in a competitive environment;
4. achievement of the maximum growth rate of the price of the organization;
5. a stable growth rate of the firm's reserve;
6. maximum increase in profits;
7. minimizing the costs of the enterprise;
8. guaranteeing profitability and economic efficiency.

Basic concepts of financial management

Concept	Meaning
cash flow	recognition of cash flow, its duration and type; assessment of the factors that determine the value of its indicators; determination of the discount factor; assessment of the risk that is associated with this flow and how it is accounted for.
Trade-off between risk and return	Any income in business is directly proportional to the risk. That is, the higher the expected profit, the greater the level of risk that is associated with the non-receipt of this profit. Most often, goals are set in financial management: maximizing profitability and minimizing costs. But achieving rational proportions between risks and returns is the ideal solution.
Cost of capital	All sources of financial security of the organization have their own value. Cost of capital - the minimum amount that is required to recover the cost of maintenance this resource and which ensures the profitability of the company. This concept plays an important role in the study of investments and the selection of backup options for financial resources. The task of the manager is to choose the most effective and profitable project.
Efficiency of the securities market	The level of efficiency of the securities market depends on the degree of its information content and access to information for market participants. This concept is also called the market efficiency hypothesis. The information efficiency of the market occurs in the following cases: a large set of producers and consumers; free delivery of information to all market participants at the same time; the absence of transaction costs, taxes and fees, as well as other factors that impede the conclusion of transactions; the general level of prices is not affected by transactions of individuals or legal entities; the behavior of market entities is rational and aimed at obtaining the maximum benefit; all market participants a priori cannot receive excess income.
asymmetric information	Some categories of persons may own confidential information, access to which is closed to other market participants. The carriers of such information are often managers, managers, financial directors firms.
agency relations	Bridging the gap between ownership, management and control functions. The interests of the manager of the company do not always coincide with the interests of his employees. Owners of organizations do not always need to thoroughly know the methods of business management. This is due to the existence of alternative decision-making options, some of which are aimed at obtaining instant profit, while others are aimed at future income.
Opportunity Costs	Every financial decision has at least one alternative. And the adoption of one option inevitably entails the rejection of the alternative.

A thorough knowledge of the concepts of financial management and their relationship entails the adoption of effective, balanced, profitable and rational decisions in the process of managing the financial flows of the enterprise.

Functions of financial management

Any process or activity assumes the presence of certain functions. Financial management functions are divided into 2 formats:

Financial management - what kind of profession is it?

The relevance and relevance of financial management in modern business leads to a huge demand for qualified specialists, which today significantly exceeds the supply that exists in the labor market. This suggests that a person with knowledge in the field of financial management can count not only on guaranteed employment and consistently high earnings, but also on the rapid development of a career.

So, what knowledge and skills should a specialist applying for the position of a financial manager have?

Get necessary knowledge, as well as to systematize existing knowledge without interrupting the main activity, you can take the course Financial management and financial analysis. The first module of the course is provided free of charge.

Training from the AC "Active" is a convenient remote format, highly qualified Teaching Staff and the opportunity to take the international diploma exam online.