A). Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise.
Functions of Financial Management are an estimation of capital requirements that a finance manager has to make estimation with regards to capital requirements of the company. This will depend upon expected costs and profits and future programmes and policies of a concern. Estimations have to be made in an adequate manner which increases earning capacity of enterprise.
Hotels can use the determination of capital composition, Choice of sources of funds: For additional funds to be procured, a company has many choices like Issue of shares and debentures. Loans to be taken from banks and financial institutions as well as investment of funds that the finance manager has to decide to allocate funds into profitable ventures so that there is safety on investment and regular returns are possible. Furthermore, its roles financial controls that the finance manager has not only to plan, procure and utilize the funds but he also has to exercise control over finances. This can be done through many techniques like ratio analysis, financial forecasting, cost and profit control.