Introduction to
Financial Management
Siti Nur Aisyah
Nusa Putra University
Have an idea
about financial
management?
Why is financial management important?
01 Availability of 04 Create and implement
sufficient business growth and
funds expansion plans
02 Ensure 05 Safeguard the
efficient and organization against
high ROI market uncertainty
03 Maintain a balance through ensuring
between income & buffer funds
expenses
The scope of financial management
➢ the principle that it must
protect the financial
interests of investors,
shareholders and ensure
business growth.
➢ ensuring greater ROI that
generates more wealth for
all shareholders.
Financial
Management Goals
1. Assess Capital Requirements
2. Determination of Capital
Structure
3. Creation of Effective Financial
Policies
4. Optimalisasi Sumber Daya
Financial Manager and Advisory Functions
➢ Fundraising
➢ Budget allocation
➢ Profit planning
➢ Understanding capital
markets
—Someone Famous
Principles of Financial Management
● Consistency
● Accountability
● Transparency
● Viability
● Integrity
● Stewardship
● Accounting Standard
Development of financial management
science
Quoted from the book Financial Management (2015) by Dede Suleman, et al., the
development of financial management science began in the 1960s to 1970s. The main
focus is selecting assets and debt that can maximize company value and prosperity for
shareholders. Then in the 1980s, the analysis of financial management expanded,
including:
1. Inflation and its effect on interest rates
2. Deregulation of financial institutions Increased use of computers in financial
decision-making analysis
3. The increasing importance of international financial markets.
4. Starting from the 1990s, its scope became increasingly wider, including international
financial management.
Global Perspective of
Financial Management
international trade, intercultural relations,
political change, and technological
developments
The Role of Technological Development
Technology also plays an important role in expanding business and management
horizons to a global level. The internet and information technology have changed the
way we communicate, transact and conduct business. The ability to utilize technology
wisely will help us to connect with customers, suppliers and business partners around
the world.
10 Financial Management Challenges for
Business
1. Limited or Inconsistent Cash Flow
2. Not Using a Budget
3. No Preparation for Unexpected Expenses
4. Not Raising Enough Capital
5. Too Much Debt
6. Ignoring Required Reporting
7. Poor Tax Compliance
8. Not Paying Bills on Time
9. Mixing Business and Personal Finances
10. Bad Marketing Tactics
Reasons for Choosing a
Financial Management
Major?
1. Huge job prospects
2. Many companies are needed
3. Opportunity to earn a large salary
4. Get business knowledge
Job prospects and opportunities in the
field of financial management are
grouped into 3, namely:
1. Career in financial management
2. Career in investment
3. Careers in markets and financial
intermediation
Career Opportunities in Financial Management
➢ Analyze and forecast economic trends in the
industry
➢ Analyze company reports and make
suggestions regarding improvements
➢ Fund management through selecting an
investment portfolio
➢ Focuses on actions that reduce financial
risks for the company
➢ Researcher
➢ Financial apps developer
Career Opportunities in Financial Management
➢ Junior Positions
1. Financial Analyst
2. Credit Analyst
3. Cash Manager
➢ Senior Positions
1. Assistant Treasure
2. Manager of Corporate Financial Analyst
3. Risk Manager
4. Pension Fund Manager
5. Director of Financial Reporting
6. Chief financial Offer
7. Treasure
8. Controller
The following are the skills you must have in
order to become a financial analyst:
1. Qualitative Research
2. Problem Solving
3. Public Speaking
Financial Analyst Duties
➢ Explain financial technical reports using graphic and chart media.
➢ Seeing and observing potential developments in the fields of industrial technology,
business and finance.
➢ Analyze financial information in order to make investment decision reports. On this
side, a financial analyst is also tasked with making estimates of business
conditions.
➢ Analyze information from financial services publications in order to observe how
the company is developing from an economic perspective.
➢ Interpret data on prices, income, stability, investment risk tendencies, and
economic influences that influence investments.
➢ Analyze the company's financial reports from year to year
➢ Identifying new financial trends in the market
➢ Create long-term commercial plans
➢ Looking for investment opportunities so that the business can continue to grow
➢ Make estimates of company income and expenses.
Come to observe more ☺
The huge number of the development of financial technology in all
parts of financial services makes the great change on the financial
activities, including the users and the developers. Where should we
put ourselves to be with?
