Functions in financial management

such as in management science, there are several functions including planning, organizing, mobilizing, controlling. While in financial management how a financial manager can perform (to manage) the management functions, especially in the field of corporate finance, while the functions in financial management are:

a. The function of fund planning (planning. Function of funds)
In this function, how financial management or financial managers can plan funding requirements, what activities are prioritized within the company and what sources of funding are included, who is authorized to make decisions on funding, why  should there is a funding plan, where funding sources must be obtained, when funding plans must be made, and how / how much funding planning is needed by the company.

b. Function of raising funds (raising / obtaining of funds)
It is an effort to obtain the necessary funds at a low cost and the lightest conditions, in obtaining funds must refer to considerations of efficiency and effectiveness, carefully consider the nature and costs and each source of funds to be selected, because each sources of funds have different consequences. The effort to get funds is also called spending (financing / passive spending) which is known in two systems, namely:

1. External financing, is funds originating from outside the company such as funds from investors, funds from creditors (banks), and through share ownership or issuing new shares / issuance of shares, and the procedures for granting dividends to shareholders (dividend decisión).

2. Internal financing, is funds originating from within the company, namely funds resulting from the company's operations such as; revenue from sales (profit) that has not been distributed, reserves for depreciation, and others. Points a and b are also called financing decisions (financing decisions) taken by financial managers.

c. The function of the use of funds (allocation of funds)
Is how to manage these funds effectively and efficiently so that the allocation of these funds actually reaches the desired target, so that the company's goals are achieved. To place this fund, several questions will arise, namely; where the funds should be used (where allocation of funds),

how much funds should be invested (how allocation of funds), in what funds are invested (for what allocation of funds). The most important thing is that the embedded funds must be able to maximize the level of profit that is implied, this decision in managing funding is also called an investment decision (capital budgeting).