Financial Management and Careers in Finance.

Financial Management and Career Planning.Avtar SinghAssociate Professor & Head Deptt of Commerce G.T.B. National College Dakha.

Part I What is Business Finance ?What is Financial Management ?Objectives of Financial Management.Financial Decisions.

What is Business Finance ?Business Finance is the money required to carry out business activities such as :

To establish, run and modernize business.To acquire tangible assets.To acquire intangible assets.For carrying day to day operations.

Finance is the life-blood of business and there must be a continuous flow of funds in and out of a business enterprise.

What is Financial Management?Financial management may be defined as planning, organising, directing and controlling the financial activities of an organisation.

According to Guthman and Dougal, financial management means, the activity concerned with the planning, raising, controlling and administering of funds used in the business.

It is concerned with the procurement and utilisation of funds in the proper manner.

An overview of Financial Management.

Investment Decisions.Long Term Investment or Capital BudgetingHuge funds are committed in these decisions.Irreversible in nature.

Factors affecting Capital Budgeting DecisionsCash flowsRate of ReturnCapital Budgeting techniques

Liquidity DecisionShort Term Investment decision or Working Capital decisionEffect on liquidity and profitability of business.Includes cash management, inventory management and receivables management.

Factors affecting Working Capital decisionsNature of BusinessScale of operatiionsBusiness cycleSeasonal factorsOperating cycleCompetition

Financing DecisionDecision about long term sources of Finance.Equity Share Capital Preference Share CapitalDebentures, Bonds etcBank LoanRetained EarningsFactors affecting financing decisionsCost of raising funds, Risk, Floatation cost, Cash flow position of the company, Control consideration, state of capital markets.The decision centres round optimal Capital Structure.

Dividend DecisionHow much of the profits after taxes should be given as dividends to shareholders and how much should be retained for future.

Factors affecting Dividend DecisionAmount of Earnings, Stability of Earnings , Stability of Dividends, Growth opportunities, Cash flow position, Shareholders preferences, Taxation policy, Legal provisions.

The Finance Managers RoleThe finance manager is responsible for shaping the fortunes of the enterprise, and is involved in the most vital decision of the allocation of capital.

Functions Funds RaisingFunds AllocationProfit PlanningUnderstanding Capital markets.

Part II Career Planning

Careers in Finance PrerequistesQualifications such Chartered Accountant, Cost and Works Accountant, Management Accountant, Chartered Financial Accountant, MBA finance, M.Com.

Qualities Quantitative aptitude, Writing Skills, Communication skills, Intelligence Quotient, Emotional Quotient, Stress Quotient.

Chartered Accountancy as a profession

Objectives of the course

The emphasis of this scheme is on -Encouraging young talented students having aptitude for accounting education to make an early entry to the profession;

Encouraging graduates and others appropriately qualified students to pursue CA course;

Complementing theoretical education by practical training;

Instilling technical skills through Information Technology Trainings;

Instilling inter-personal and soft skills through Orientation Programme and General Management and Communication Skills (GMCS) courses;

Inculcating professional ethical values and attitudes among students;

Inculcating analytical ability among the students through case studies;

Globalizing chartered accountancy education through organization of education and training abroad.

Updated syllabus is benchmarked to Chartered Accountancy courses offered around the globe and is fully compliant to International Education Standards issued by the International Federation of Accountants.

How to pursue the course?

Cost and Works Accountant

Opportunities for CAs

What does a Cost Accountant do?A cost Accountant is a person who offers to perform services involving the Costing or pricing of goods and services or the preparation verification of Cost accounting and related statements

How to become a Cost Accountant ?

Opportunities

Thank You !

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