What are the goals of finance function?

Aside from finance, a firm has several other responsibilities such as production, marketing, and people. All of these tasks are intertwined with the finance function since they all require cash to operate. Consider the following scenario: To create high-quality items and ensure the effective operation of the different activities involved in the production function, investment is required, either in fixed capital or working capital, which is a finance function. The personnel function is concerned with the availability of appropriate labourers at the appropriate times, as well as their training. All of these tasks need funding.
Ultimately, all operations or functions are linked to the financial function. The ability of these functions to work together is critical to a company’s success.

The objective of financial management are:-

  1. Profit maximisation:- Main aim f any kind of economic activity is earning a profit. A business concern is also functioning mainly for the purpose of earning a profit.

  2. Wealth maximisation:- Wealth maximisation is also the main objective of financial management. Wealth maximisation means to earn maximum wealth for the shareholder.

  3. Proper estimation of total financial requirement:- Proper estimation of total financial requirement is very important objective of financial management.

  4. Proper immobilisation:- Mobilisation of finance is an important objective after estimating the financial requirements, the finance manager must decide about the source of finance.

  5. Proper utilisation of finance:- Proper utilisation of finance is an important objective of financial management. The finance manager must make proper utilisation of finance.