About financial management // Economics

Every business, home, company, public and private banks handle financial administration very closely, since with the support of financial instruments they have better management of capital assets, ineffective money, bank deposits, through strategies according to this Monetary liquidity, to invest these capital assets either in the acquisition of plant and equipment, inventory or also a breach, purchase of debt from another company, trust, insurance policy, is a way to protect a capital investment, to produce active sea capital. It is because of the importance of knowing financial administration, since in it it is about maximizing the assets of a company, optimizing the management of its financial resources to achieve objectives and increase efficiency and profitability; in economic activity, also that for small or medium producers who want to start a trade or an investment, they must have knowledge of what they plan to do with their capital that they plan to invest, be aware that their profitability is in the medium and long term.

Among the objectives we have: Control of the use of capital, in order, my friend, in the way of freeing financial resources, management of financial resources in order to organize funds, know the profitability of the company, Risk management that will allow us know what strategy we can use to have more profitability of the financial resource placed in the investment. In this field of administration, it shows us the monetary liquidity and the management of capital assets, in which it can show us in a general balance, also the profit and loss statement, it is about seeking that financial resources are lucrative and liquids to the same climate.

Strategy management is also analyzed either by merchandise assets based on their turnover and investment in plant and equipment that has a capital value, also when two companies are operated to increase their capital and financial assets, and that he must know how to invest excess financial resources in operations such as: investments in the capital market, acquisition of real estate, land or other assets for the company.

In reference to the historical value of money, this allows us to know, according to monetary liquidity, if it is money that has lost value or also its ability to recover via investment, since it is subject to the level of inflation and exchange control, That is why when investing, knowing well the price levels to invest in assets that are not neglected, but in capital that generates profitability, the investment in the present will compensate in the future an additional amount invested. It should be clear that the planning process can avoid risks and errors, funds are available for any eventuality and possible indebtedness is avoided, in addition to the strategies to make payments through financial leverage or also the snowball effect, in such a way. form that is considered to analyze monetary. opportunities makes saving an efficient investment.

Finally, already having clear the objectives and the importance of financial management, it shows us from another perspective the management of money which properly accounts for capital movements and analyzes the best ways to control it, in order not to say looking for a goal where availability of funds and maximization of interest are essential.