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ENGLISH WORKING PAPER

“TEXT DESKRIPTIVE FINANCIAL MANAGEMENT”

DISUSUN OLEH :
RAFIDA ARDELIA(1641011004)
VIA LITA GANDARI(1641011003)
KOMANG TIARA SETIA D (1641011006)
ERA WULANSARI(1641011018)
SISCA AYU MUJIASTUTI (1641011008)
RIVAL AFRIANSYAH (1641011015)

FACULTY ECONOMICS AND BUSSINES

UNIVERSITY OF LAMPUNG

2017
Financial Management
financial management are all activities of the Organization in acquiring, allocating, using the
funds of the Organization effectively and efficiently.

This sense of experiencing a range of developments, starts from the notion that merely give
priority to activities to get/earn funds alone to include activities get, how to use the funds to
the management of assets (assets) against the company.
Understanding financial management according to experts

There are some experts who argue about financial management:


James Van Horne, "All the activities that are directly related to the acquisition of funds and
management of assets (assets) with a thorough goal."
Suad Husnan, "Financial management is the management of all financial functions"
Bambang Arwana, "All activities undertaken by the company related to the effort of obtaining
the funds needed and costs are minimal as possible and profitable terms and attempts to use
the funds obtained in an efficient and effective"
Liefman stated:
"The definition of financial management was the effort of providing money and use the funds
obtained to get the assets."
We can summarize and interpret their own based on the definition of financial management.
Financial management is a process in the activities related to the financial company that starts
with how to obtain and use.
Use of funds obtained should be straightforward, efficient and effective so that the planned
financial goals could be realized.

The Principle Of Financial Management


Financial management not only talks about the recording of accounting course. Moreover,
financial management is the important part and can not be considered as an activity that just
being the financial affairs of people.

In practice, financial management appear to nourish the financial condition of the company.

It is necessary for the principles underlying financial, among them:


 Consistency (Principle Of Consistency)
The company's financial systems and policies and their application should be consistent, don't
fluctuate from period to period.
But keep in mind that the financial systems and policies that have been taken doesn't mean it
shouldn't be done financial adjustments in the event of a significant change in the condition
of the company
These changes should be accompanied by a rationale that was proclaimed the obvious and
could be accepted.
Inconsistent financial policy may indicate that there was manipulation in the financial
management of the company.

 Accountability (Accountability Principle)


The principle of accountability is a moral or legal obligation inherent in every individual,
group or company in providing an explanation of how the use of funds or authority has been
granted.
Each individual or group must be able to explain the use of the funds and what it has
achieved.
This principle was needed as a form of accountability to stakeholders so that all know how
authority and the funds obtained be used.

 Transparancy (Principle Of Transparency)


Management must be open to improvements, gives information on all the activities carried
out to interested parties.
Including giving a complete financial reports, reasonable, timely and accurate that could be
accessed easily by those who are in need.
Deviations against the principle of transparency, this may indicate that management has to
hide something, and something like this is so can damage the company.

 Viability (Viability Principles)


The whole operational expenditure as well as that is a strategic must present disesuiakan with
existing funds, this must be done so that the company's financial health can be maintained.
Company owners certainly wanted the continuity of his efforts didn't stop, operate
continuously on an ongoing basis.
The mandatory financial management financial plan can indicate the extent to which a
company can execute its strategic plan in the memeuhi financial need is required.

 Integrity (The Principle Of Integrity)


Every individual must have a level of integrity that is capable of running the company's
operations.
In addition to financial reports and notes should be maintained intergritasnya by providing
full financial information and the level of accuracy that is high on the company's financial
record-keeping.

 Stewardship (Principles Of Management)


Financial management should be able to manage effectively the funds already obtained and
ensure the funds obtained will be used as best as possible.
Financial management should do so with care when drawing up the strategic plan, identify
the financial risks and drawing up financial control systems as well as make that best suits the
character of company.

The Concept Of Financial Management


Financial management is the management of the financial function, and the function of
financial management talked about how applying and placing the funds in existence.
The functions that exist within the company should be implemented properly considering the
functions there are inter-related to each other.

Financial management has three main activities:


1. Acquisition of funds, is aiming to obtain source of funds, it is derived from internal ntah
company or sourced from external companies
2. Use of funds, an activity is in use or invest funds in various forms of assets
3. Management of assets (Assets), this activity is an activity that is performed after the funds
have been obtained and have invested or allocated into the form of assets (atkiva), the Fund
must be managed effectively and efficiently.
Can be seen, the decision-making functions of financial management is the decision about
funding, investment and asset management.

The Goal Of Financial Management


The main purpose of a corporation is to maximize or increase the welfare of the owners of the
company.
Outstanding shares is evidence of ownership, the welfare of the owners can be reflected from
the market price of the company.
While the prices the company is a result of management efforts in obtaining funding, the
results of investment decisions and all its activities in managing the assets of the company.
So, financial management aims to maximize the value of the company. management should
be able to suppress unnecessary turnover. activities that could be detrimental to the company.
The Function Of Financial Management
 Investment Decision (Investment Decisions)
Investment means investing in real assets or financial assets (securities).
In investment decisions, management must decide the existing funds will be invested in the
form of what?
Buying the assets and then manage it or play with the securities?
This decision was extremely influential directly against her little big earning ratios of
investment as well as the flow of funds of the company in the future.
 Financing Decision (A Function Of Funding)
The function of this study the different sources of funding the company's funds that can be
obtained, either in the form of capital or debts.
This function is paying attention to the source of funding and costs minimal as possible and
also terms that can benefit both it comes from internal funds or resources from outside the
company (external).
 Dividend Decision (Decision Of Dividends)
In this function, the decision usually regard it as:
• Quantity percentage profit which will be distributed to owners in the form of cash
• the level of stability of the dividend will be distributed by management
• devidend Stock (stock dividend)
• Stock split (splitting of shares)
• Withdrawal of shares that have been outstanding
Detailed Financial Management
• planning over finances, financial management plan and income pengeluaraan funds and also
the other activities at certain periods
• Conduct corporate financial Budgeting, this is a follow up to the top by making financial
planning in more detail again all the expenses and income of the company
• Financial management company, in this case, use the financial management of funds
existing within the company to memaksimalkannya in various ways that can be reached
• sourcing funding, financial management trying to find the source of the funding company
that will use the company's operational activities
• Financial Storage, financial management saves to secure the company's funds that have
been collected.
• Control over the finances, evaluate and improve the financial management of a financial
system that exists within a company where not yet qualified
• Conduct a financial examination, internal audit of the financial statements of the company
are performed by financial management to ensure the absence of adverse deviation occurs
• the company's Financial Reporting, financial management provides financial information
about a company's financial condition to the present can be used as evaluation material later.

Financial Management Functions


• Supervision towards the cost
• Determination of price policy
• Forecasting future profits
• Measurement of costs for working capital