Tài liệu báo cáo bằng Tiếng Anh | Đại học Ngoại Ngữ - Tin Học Thành Phố Hồ Chí Minh

HOCHIMINH CITY UNIVERSITY OF FOREIGN LANGUAGES
AND INFORMATION TECHNOLOGY
DEPARTMENTOF INTERNATIONAL BUSINESS ADMINISTRATION ---------***-------- FINAL REPORT UNDERSTANDING FINANCIAL MANAGEMENT
Nguyễn Thị Kim Thoa 22DH122630
Lê Hữu Trung Thiện 22DH123707
Nguyễn Quách Minh Thuận 22DH122655 Class: KQ2215-KQ2216
Instructor: NGÔ VĂN BÌNH HCMC, 12/2022 1 CONTEN 1.
ABSTRACT................................................................................................................... 1
2. INTRODUCTION......................................................................................................... 2 3.
LITERATURE REVIEW............................................................................................. 3
3.1 . WHAT IS FINANCIAL MANAGEMENT............................................................3 3.1. 1
The concept of financial management.....................................................................3 3. 1.2
Elements of financial management.......................................................................... 3
3.1.3 Goals of financial management...............................................................................4
3.1.4 Function of financial management..........................................................................5
3.2 THE ROLE AND PLAN OF FINANCIAL MANAGENMENT .............................5
3.2.1 The role of financial management...........................................................................5 3.
2.2 The plan of financial managem
ent. .........................................................................6
3.3 Distinguish between finance and financial management
. .........................................7
3.4 Learn about capital.....................................................................................................7
3.4.1 Obtaining short-term financing..............................................................................7
3.4.2 Obtaining long-term financing...............................................................................8
4. CONCLUSION................................................................................................................. 8
5. REFERENCE.................................................................................................................... 9 1. ABSTRACT
The existence and development of an enterprise in the economy depends on many different
factors such as business environment, competition, especially the level of financial
management of the business. The level of financial management of managers is reflected in
their financial understanding, not only mastering the financial situation of the business and
the market, but also having the ability to process financial information. Financial planning is
the process of framing goals, policies, procedures, programs, and interrelated budgets
related to financial activities.
Keywords: financial management, budgets, financial, management. 1 2. INTRODUCTION
Financial management allows organizations to plan and use future projects and
finances. The realization of capital, assets and things necessary to maximize the
return of investments. The financial manager is responsible for budgeting, predicting
cash flows, and determining how to invest and finance a project. They are responsible
for how much the product or project is expected to cost and how much revenue is
expected to be earned so that the company can invest the appropriate amount in the
product or project. Financial managers take on a variety of roles and positions while
continuing to carry out their primary job responsibilities. In addition, financial
planning affects the human and physical resources used to enable the company to run
its business. Therefore, financial planning is the deciding factor whether a company
can succeed in its business in some way or not. 2 3. LITERATURE REVIEW
3.1 WHAT IS FINANCIAL MANAGEMENT?
3.1.1 The concept of financial management.
Financial management is a business function where it involves investing
available financial resources to achieve business success and return on investment
(ROI). Financial managers organize, plan, and control business transactions. Most of
them focus mainly on sourcing capital from various sources be it an entrepreneur's
initial investment, sponsorship, public release or any other sources. Since then,
financial managers are responsible for allocating funds in the most optimal way to
maintain stability and ensure greater financial growth. Financial management also
means applying general management principles to the financial resources of a business.
3.1.2 Elements of financial management.
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Financial management has four known elements:
Financial Planning: As an essential aspect of financial management, it is
intended to ensure the availability of appropriate funds at the times needed to meet
the needs of a company. These needs include short-term requirements such as
investments in equipment and supplies, in addition to employee-made payments and
credit-based fund sales. On the other hand, long-term needs may include the need for
financing to make significant improvements to the productive capacity of the
company.Financial managers determine the goals that need to be achieved to be able
to meet the needs and growth of the business. Therefore, the goal is to define the
goals and implement the steps necessary to achieve them.
Financial control: The economic supervisor makes sure that every location of the
company follows the described plans. Research and compare current reports with
reports from previous periods.
The issues that financial control deals with include:
Are the assets used efficiently?
Are assets protected for the business?
Does the management handle the behavior in the best way in the interests of
shareholders in the face of corporate regulation?
Financial Organizing and Directing: When planning, the economic manager
determines how to use and organize the employer’s assets to implement the strategies
that have been made extra effectively. The manager works day-to-day while
managing to keep the coordinating results going efficiently.The ultimate goal is to use
resources efficiently and provide regular monitoring.
Financial Decision Making: Decision-making incorporates the other three
components (i.e. managing, preparing, and directing and organizing) decisions by
reviewing information gathered and making decisions for optimal enhancement financial management. 4
The Financial Manager makes decisions between the alternatives
available.Decision making occurs concurrently with planning, coordination, and
management.All forms of decisions are based on fact, and judgment. One of the most
important financial decisions is figuring out what to do with the profits a company
receives – keep or allocate them. In the case of exceptionally high dividends, the
company will find itself in a desperate financial situation to reinvest to generate
revenue .From the above four factors, it shows the importance of financial
management for businesses, bringing many benefits as well as professionalism to a growing business.
3.1.3 Objectives of Financial Management:
The financial management is concerned with procurement, allocation and
control of financial resources of a concern.The objectives can be: To ensure regular
and adequate supply of funds to the concern.
To ensure profits for shareholders, it will depend on earning ability, market
price of shares, expectations of shareholders.
To ensure optimal use of funds. Once the coins are purchased, they should be used at the lowest cost.
To ensure safety when investing, it is convenient to invest in safe projects so
that the appropriate rate of return can be achieved.
Plan for a sound capital structure a sound capital structure is required, to
maintain a balance between debt and equity.
3.1.4 Function of financial management:
Estimation of capital requirements: A financial manager must plan in relation
to the capital requirements of the company. It will depend on the expected costs and
profits as well as the relevant programs and policies in the future for the company.
The estimates of the business must be done adequately to increase the earning potential. 5
Determination of capital composition: Once the estimate is complete, the
capital structure must be decided by the manager. As this involves short-term and
long-term debt equity analysis. and will depend on the proportion of equity that the
company owns, there are additional funds raised from outside.
Choice of sources of funds: To buy more capital, a company has many
options such as: issue stocks and bonds, can borrow from banks and financial
institutions, public deposits are withdrawn in the form of bonds, etc. votes, will
depend on the relative pros and cons of each source and the timing of funding.
Capital investment: The financial manager must decide to allocate capital into
profitable ventures to ensure the safety of the investment and get regular returns.
Handling surplus: In particular, the decision on net profit must be made by
the financial manager. It can be done in two ways:
Dividend declaration: includes determination of dividend rate and other benefits such as bonuses.
Retained Profit: The volume to be decided will depend on the company's
expansion, innovation and diversification plans.
Cash Management: A financial manager has to make decisions regarding cash
management. Cash is used for various purposes such as payment of wages, salaries,
maintaining sufficient inventory, purchasing raw materials, etc.
Financial control: In addition to planning and procurement, financial
managers also have to use funds but they also have to exercise financial control.
maybe this is done through many techniques like ratio analysis, cost and profit control etc.
3.2 THE ROLE AND PLAN OF FINANCIAL MANAGENMENT
3.2.1 The role of financial management:
Key Roles of Financial Management: 6
Bookkeeping and Accounting: It is essential to identify, take appropriate action
and record the financial details of a company. No matter what money is debited from
the company's account, an effective financial management accounting system
provides the best overview. In addition, bookkeeping is intended to record the day-to-
day transactions of a company and form the basis of an accounting system. The role
of financial managers is now expanding and that is becoming more difficult.
Furthermore, new tools have emerged that allow financial managers to pinpoint their
company's financial strengths and weaknesses. To be able to understand these new
tools and how to use them, financial managers can take an executive finance course
from any reputable institution to update their knowledge.
Reporting: Financial statements play an important role as most stakeholders
depend on the organization's financial statements before making any decisions. And
the financial statements will be shared to shareholders by the financial team, who will
regularly update and disseminate the latest information. And depending on that report,
shareholders will forecast when to buy or sell shares. Therefore, the accuracy of
financial data is essential for decision making.
Receivables and Payables:Managing what your company owes its suppliers
and what customers owe the company is essential. To give a clear view of the amount
of working cash a company should have.
Investment opportunities: Financial statements provide the opportunity to
invest in the right stocks at the right time. With a clear view of the financial health,
the organization can take advantage of the most precise opportunities.
Risks: To have a robust financial management system it is imperative to
maximize profits and minimize risks with liability. An effective finance team should
incorporate all the essential elements of a company.
3.2.2 The plan of financial management:
Definition of Financial Planning: Financial planning is the process of
estimating the capital required to complete an organization's business activities. It is a 7
process of formulating financial policy related to the provision of assets, investments,
and fund management of an organization. Financial planning is the process of
formulating goals, policies, procedures, programs, and budgets that refer to financial activities. Financial planning process:
Forecasting financial planning: For any company, financial planning plays an
important part in financial planning. A short-term forecast projects revenue and
expenses over a period of one year or less.
A short-term forecast section gives senior management as well as executive
managers some sense of the earnings or profit potential of various strategic plans. It
also helps to prepare the company budget.
Working with the budget process: Is a financial plan, in which it relies heavily
on the accuracy of the balance sheet, income statement of cash flows, and financial
projections. short term and long term. The budget becomes the primary guide for a
company's financial activities and its projected financial needs. Three types of
budgets are common in financial planning: capital budgets, cash budgets, executive or master budgets.
3.3 DISTINGUISH BETWEEN FINANCE AND FINANCIAL MANAGEMENT
There is a clear difference between finance and financial management,
finance is an economic category that reflects the distribution of social wealth in the
form of values arising in the process of formation, creation and distribution.
distribution of monetary funds of entities in the economy to achieve financial goals.
objectives of the subjects in each given condition. But despite the big difference, there
is a close relationship between finance and financial management. Between them
there are common points to coordinate for planning and financial management. And
their ultimate goal is to bring profits to the company. 8