NICON insurance was used as a case study for this research, which looked at “the impact of financial management on a corporate organization.” The term “financial management” refers to the process of planning and controlling a company’s finances. It is carried out in order to meet the organization’s goals, which include profit maximization, wealth maximization, accurate estimation of the organization’s entire financial requirements, proper mobilization, and proper financial utilization, among others. The study’s challenges were recognized, as were the study’s objectives, which included an examination of the impact of financial management in corporate organizations. The research technique, which includes the population, source of data, sample size, and method of investigation, was x-rayed and related literatures were reviewed.
BACKGROUND OF THE STUDY
Financial management encompasses all of the financial manager’s activities relating to the increase in capital, cash, and credit requirements, as well as the effective control of financial resources.
Financial management in an organization is responsible for a variety of tasks, including converting forecasts into planned and budgeted amounts, planning the appropriate capital structure, raising cash flow from outside the company, forecasting the future, investing surplus funds, and controlling the cash balance and flow in accordance with plans and changing circumstances.
Based on the aforementioned activities, practicing managers are interested in the study of financial management because financial decisions are among the most important for businesses to make, and as a result, they are giving better treatment for a better understanding of financial management that provides them with conceptual knowledge.
Financial is the lifeblood of any organization, and it was created in 1990 because it deals with the real flow of money as well as any claims against it. Following that, the financial managers make decisions in a more coordinated manner that is responsible for the control system.
Financial management ensures that funds are allocated efficiently among the various needs. The allocation with the firm’s underlying goal of maximizing profit in the customers’ wealth. The role of financial management has evolved from working capital management to long-term asset and liability management. As a result, the purpose of this study is to investigate the influence of financial management in cooperative establishments, using NICON as an example.
STATEMENT OF PROBLEM
1. Inadequate financial planning by financial management, resulting in financial losses for a business.
2. Mismanagement of funds/finance intended for the organization’s operation is used to secure unneeded assets for the company.
3. Financial managers make poor financing decisions in terms of investment, financing, and dividends.
OBJECTIVES OF THE STUDY
1. To investigate the impact of a financial management in a business.
2. Determine the financial manager’s responsibilities and roles in financial management.
3. To learn about the problems and challenges that financial managers face in a Nigerian corporation.
4. To provide ideas and advice to the financial manager on the best way to handle finance management in a corporate organization.
1. What is the impact of financial management in a business?
2. Are there any issues that finance managers in a business face?
3. How effective and efficient are finance managers in making organizational decisions?
4. What are the consequences of financial managers mismanaging funds?
5. What are the benefits of proper financial planning by the financial manager?
SIGNIFICANCE OF THE STUDY
In the following ways, the research work will be more important and valuable to students, financial managers, investors, corporate organizations, government, and the general public.
To the financial manager: The research will help them understand their overall roles, tasks, functions, and responsibilities in financial management, as well as guide them through financial planning, financial investing decisions, and financial diversifications.
To the investors: The research will show them what the responsibilities of financial managers are and what the best measures are for determining the best performing financial manager.
To the government: The researcher report will be used to help the government identify companies that make significant contributions to the economy.
SCOPE AND LIMITATION OF THE STUDY
The study project in Enugu state looks at “the influence of financial management in a business organization using the (NICON).”
During the course of this inquiry, the researcher experienced certain difficulties. Lack of funds, insufficient contact with some respondents, bias, and distrust originating from ignorance/misconception based on the research study are just a few of the problems.
Furthermore, the time allotted to this research project is woefully inadequate, as the researcher must combine research with other academic responsibilities.
DEFINITION OF TERMS
Accumulated profits: The amount shown in the relevant profit accounts that can be carried forward to the following year’s account;
Activity ratio: A management ratio that divides the output level expected for a certain accounting period by the production level expected for that period.
Amortization is the process of treating the annual amount judged to waste away from a fixed asset as an expense.
A balance sheet is a statement of an organization’s total assets and liabilities as of a specific date, usually the last day of the accounting period.
Benchmarking is the process of discovering best practices in products and processes, both within and outside of an industry, with the goal of using this as a guide and reference point for improving the practice.