paper of finance management

PAPER OF FINANCE MANAGEMENT

 

By:

1.      Devi Eka Sari                    73114120

2.      Yulia Fiftiyanti                 7311412062

3.      Siti Waryuni                      7311412090

4.      Dwi Wahyuningsih           7311412091

5.      Adian M.P.N                    7311412116

UNIVERSITAS NEGERI SEMARANG

2014

ACKNOWLEDGEMENTS

Praise and thanks author prayed to God Almighty who has provided guidance and grace, also support from lecturers, parents, and friends,  because  it I can finish this paper with the title "Financial Management" to fulfill English Business’s task.
By reading this paper the authors hope can help our  friends and  the readers in understanding the material about financial management, and can enrich the readers.
The author realizes that in completing this paper there are shortcomings and errors in terms of words, language, or writing in presenting the material. Suggestions and criticisms are expected by the authors that this paper can be better.
Hopefully, this paper can be useful for friends and the readers.

Semarang, 18^th March 2014

The author

CHAPTER I

INTRODUCTION

Financial management is management of the financial functions, financial functions that include how to obtain funding (raising of funds) and how to use these funds (allocation of funds).

The development of financial management is strongly influenced by many factors including: the factors of monetary development policy, tax policy factors, factors of economic conditions, factors of social conditions, political conditions and factors

Monetary policy-related interest rates and inflation, the impact of inflation on financial management, among others:

1.      Accounting issues

2.      Difficulty planning

3.      Demand for capital

4.      Interest rate

5.      Bond prices declined

Economic conditions also have a direct impact on financial management, among others:

1.      International competition

2.      International financial

3.      That the exchange rate fluctuates

4.      Mergers, acquisitions, and restructuring

5.      Financial innovation and financial engineering

CHAPTER II

DISCUSSION

A.    DEFINITION OF FINANCIAL MANAGEMENT

1. Definition of Financial Management, according to some experts:

·         Liefman : Financial Management is an attempt to provide the money and use the money to get or obtain Activa.

·         Suad Husnan : Financial management is the management of the financial functions.

·         Grestenberg : bussiness how funds are organized to acquire, how the use them and how the profts bussiness are distributed.

2. Definition of financial management in general.

Financial management is an activity of planning, budgeting, inspection, management, control, search and storage of funds owned by the organization or company.

B.     THE OBJECTIVES AND FUNCTION OF FINANCIAL MANAGEMENT

1.      The purpose of financial management

Objectives of Financial Management is maximize corporate value. So, if one day the company is sold, then the price can be set as high as possible. A manager should also be able to suppress the flow circulation of money to avoid unwanted actions.

               

2.      Financial Management Functions

The function of financial management include:

·         Planning

Make a activities plan income and expenditure as well as other activities for a certain period.

·         Budgeting

Follow-up of financial planning to make a detailed expenditure and income.

·         Organizing

By using company’s  funds to maximize it in various ways.

·         Searching

To find and exploration incoming for the operational activities the company.

·         Saving

Raise funds to save the company as well as safely.

·         Controlling

Evaluation and improvement of finances and financial systems at the company.

·         Inspection

To lead internal audit  the financial companies that exist to avoid deviations.

C.    THE CYCLE OF FINANCIAL MANAGEMENT

Process	Description
Financial Planning ·         Budgeting ·         Setting targets for monitoring and evaluation	Assessing the current resource position, linking resources to operational plans and determining a budget- ·         Drawing up a budget which will guide how money is spent in order to achieve the goals set. ·         Setting targets for revenue and expenditure. ·         Setting targets for efficiency and equity.
Resource allocation	Allocating resources across sections or divisions within an organization.
In-year management Operating, monitoring, and safeguarding	·         Ensuring that funds are spent according to the financial plan and according to the norms and standards set by Treasury or Government Regulations and Prescripts. ·         Making sure that there are good internal measures and monitoring that these are applied.
Evaluation: Reviewing and reporting	·         Linking expenditure to service outputs and analyzing with respect to equity, efficiency and sustainability. ·         Drawing up an annual report. ·         Identifying key strategic issues for next annual Strategic/Business Plan.

D.    THE PRINCIPLES OF FINANCIAL MANAGEMENT

Financial management is  just  not about accounting, but it is an important part of the management activities. There are 7 Principles of  financial management  that must be considered:

1.      Consistency

Systems and financial policies of the organization should be consistent over time . This does not mean that the financial system should  not be adjusted in the event of a change in the organization . Inconsistent approach about financial management is a sign that the manipulation in financial management .

2.      Accountability

Accountability is the obligation, moral and legal which is attached to an individual, group or organization. Organizations must be able to explain how he uses his resources and what he had accomplished as responsibility to stakeholders.

3.      Transparency

Organization must be open with his work, providing information about his planning and activities to stakeholders. This include, preparing financial statements are accurate, complete, and timely and can be easily accessed by can stakeholders. If the organization is not transparent, it indicates there is something to hide.

4.      Integrity

To be awake financial expenditure level strategic and operational organization must be aligned / adjusted with the funds received . Or survival (viability) is a measure of the level of security and financial sustainability of the organization .

In operational implement the activities , the individuals involved must have good integrity. In addition, reports and financial records must be maintained integrity through completeness and accuracy of financial records.

5.      Organizing

Organizations must be able to properly manage the funds that have been obtained and ensure that the funds are used to achieve the goals set .

6.      Accounting standarts

Accounting and financial system to use organization must be comply with the principles and generally accepted accounting standards .

CHAPTER III

CONCLUSION

Financial management is an activity of planning, budgeting, inspection, organizing, controlling, searching and saving of funds held by organizations or companies to obtain capital resources and use the lowest possible effective and productive  to make a profit.

In practice, financial management is an anction to protect financial of the organization / company. So, we must built finance management system to identify the principles of sound financial management.

REFERENCE

www.wikipedia.com  to pick in 18^th March 2014

www.google.com to pick in 18^th March 2014

http://id.wikipedia.org/wiki/Manajemen_keuangan to pick in 18^th March 2014

http://blasterlog.blogspot.com/2009/07/7-prinsip-manajemen-keuangan.html to pick in 18^th  March 2014