Financial Management Goals Write a 200- to 300-word paper describing the goals of financial management. The description should include how earnings are valued, how shareholder wealth can be maximized, and how management decisions affect stockholder wealth.
Financial management should be self-descriptive. In a nut shell it’s managing the finances, income, payments, and investments within an organization. The ultimate goal…is to reach and maintain an acceptable growth every quarter or annually. Profit is the way to maximize the wealth of the shareholders. To do this you need excellent financial management. The goals and strategies of the financial management team or personnel are direct reflections of the decisions made. The financial management team should have a destination to reach and a plan on how to get there or to reach the growth needed to maximize what the shareholders have invested. As our text states “Financial managers attempt to achieve wealth maximization through daily activities such as credit and inventory management and through longer-term decisions related to raising funds” It also reminds us how important it is for a financial manager to have the ability to interpret and use all statements. To provide shareholders with the continued wealth, the financial manger must also use all the accounting resources (income statements, balance sheets and so on) to provide them with the best possible outcome in the long run. Providing the shareholders with the ability to buy more shares and sell more shares are more ways the wealth can continue. Tax breaks are as good as making money! Basically financial management controls how the earnings are valued, rather or not shareholders wealth is maximized and can make or break the stockholders wealth.