The duties of financial management are govern by the ultimate objective of any firm, i.e. profit and wealth maximization. If we generally categorize the tasks of a financial head of the firm, it might be the acquisition of money and usage of funds. 

The aim underlying the function of procurement of funds is to reduce the cost of funds, whereas the objective behind the use of funds is to maximize the returns. 

Wealth Assessment 

The role of fund procurement begins with the estimation of the funding demand. It consists of several planning exercises in order to identify all future project requirements and determine the amount needed for fixed assets and working capital investments. 

The financial manager must also decide the time of the demand, not just the quantity of the requirement, is sufficient. In terms of financial management, the timing of the cash is very significant, because it provides time, and we know that ‘today a dollar is not the same as 1 year later.’ Many banks offer wealth assessment services to their Private bank account holders as a distinct feature. However, some banks keep it as their major services. 

Financial Structure Decision 

Once a fair estimate of funds is established, two items will be finalized in capital structure decisions, namely. The balance between long-term and short-term finance. 2) mixing debt and own cash. Long-term funds are usually used to finance long-term requirements such as fixed assets, other long-term , and a permanently invested portion of working capital.

For a financial manager, working capital management is a highly crucial day-to-day task. It covers both wider functions, such as procurement and the use of finances. It generally includes administration of existing assets and obligations and maintains the gap between two organizations. These are handled according to existing finances. 

Cash management is an important responsibility in the management of working capital. The financial manager must guarantee that the necessary cost will be covered by enough cash for all branches, units etc. The smoother the cash management, the smoother the business flows. 

Dividend Decision 

Dividend decisions include mainly taking decisions on paying the shareholders’ dividends. The main concern is the dividend payout ratio that depends on many aspects such as the requirement of corporate finances for their projects, the comparison of expected returns on projects of the company and the return available on the normal market to the shareholder, stability of payment of the dividends, market expectations, income trend, tax considerations on the shareholder. 

Investment Decision 

The decisions on investment are the decisions take in connection with initiatives relating to large capital expenditure. Such expenses may include investments in factory and machinery, cars and so on. The common feature of such expenses is that in future. In the beginning, cash flows or series of outflows are involve in cash inflows. By providing Private banking wealth management investment services, banks help their customers in productive activities or assets, the effective. Investment decisions are refer to as decisions to choose the correct investment route for a reasonably lengthy time.


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