Functions of finance in a company

all the functions of finance (or the manager or the area or department of finance) in a company, are based on two main functions: the role of investment and financing function.

These functions are opposite, but, while complementary, for example, by depositing money in a bank account, we will be investing money (investment) and, simultaneously, the bank would be funded (funding). And on the other hand, if we get a bank credit (financing), the bank would be investing (investment).

A financial transaction can always be viewed from two different viewpoints, but complementary, from the investment point of view and from the standpoint of financing.

Investments

The role of financial investment by is:

• Find investment options which can tell the company, options such as creating new products, acquisition of assets, expansion of local purchase of securities or shares, etc.
• Evaluate these investment options, taking into account what has a higher profitability, which allows us to get our money in the shortest time possible. And, in turn, to assess whether we have the financial capacity to acquire the investment, either using its own capital, or if we have the possibility to access any external source of funding.
• elect the most convenient option for our business.

The search for investment options occurs when:

• ?We want to grow the business, for example, by acquiring new assets, new equipment, introduce new products, expand local, buy new premises, etc..
• ?We have excess liquidity (cash that we will not use) and want to invest in order to make it grow, for example, in the acquisition of securities or shares, deposits, bank account.

To assess and understand the profitability of an investment is made use of Financial Analysis, of which one of its main tools are the NPV and IRR.

Financing

The role of financial funding is part of:

• ?Seek funding for the company, sources such as loans, credits, securities issuance, actions, etc.
• ?Assessing these sources of funding, for example, in the case of acquiring a loan or credit, which gives us better evaluate credit facilities, which has a lower cost (lower rate). And, in turn, evaluating our ability to deal with the acquisition of debt.
• Select the most convenient for our business.

The search for financing occurs when:

• There is a lack of liquidity to meet daily business operations.
• We want to grow the business, for example, want to buy new machinery, launching a new product, expand the premises, etc.. And do not have sufficient equity to meet the investment.

Possibility Related Posts:

• 7 tips to manage your finances
  It is always possible to achieve your financial goals, no matter what your income is low, medium or high. Each of us has different financial goals, whether buying a car, a house, send our children ...
• Ways to finance the creation of a business
  Let's look at the different ways we have to fund the creation of a new business, ie the different ways we get money to invest in the creation or implementation of a business: Using equity The mo...
• Tips for being rich
  Here are some tips that will help us in our quest to achieve wealth or being rich: Develop a millionaire mindset The first tip to be a millionaire is to develop the millionaire mindset, which mean...
• 3 options to invest with little money
  If you got to save some capital and you're thinking of investing your money, you can find many investment options in the link below. But if you want to invest with little capital, we present below 3 g...
• Managing personal finances
  Let's look at some keys to the successful management of our personal finances: Understanding financial Knowing our financial situation is the starting point for the proper management of our pers...

Source: http://www.silverxcard.com/89-functions-of-finance-in-a-company.html

miss universe 2011 miss universe 2011 augmentin d2l d2l example example