Seeks financial management strives to provide the funds necessary to move the normal operating cycle in the facility and fill obligations owed by the due date as well as to retain sufficient cash to meet the conditions that may require the payment of certain amounts in an emergency. Thus the so-called liquidity target, which represents the primary task of the financial management tasks due to its direct impact on the lives and the continuation of the facility. This is evident from the seriousness and the importance of financial decisions related to each of the cash inflow and cash outflow as representing the movement of funds into and out of the facility and under which determines the amount of the financial management of investments of liquid and semi-liquid available to it and thus determine the size of the overall activity of the facility.
This affects a number of external and internal factors in the movement of funds, which affect both cash flow inside and outside of the facility. For example, notes that the cash level rise if the inflow derived from cash sales and collection of accounts receivable is greater than the outflow, which goes to the purchased materials, wages and other expenses. The changes in the price level significantly affect the cash flow of the business, then that delay shipment of goods or delay the arrival of the required materials or delays in the collection of clients have an impact in the flow volume at the facility. This is in addition to the established policies of the impact on production, marketing and other other sections within the facility. That any decisions made in every aspect of the facility have an impact on the volume of cash because of what has been caused by changes in the rate of entry and exit of cash or in the timing of these flows.
التسميات
Concepts of financial management