How is financial management important in a food manufacturing company?
Financial management refers to the use of funds available with a company in the most efficient manner so that all the requirements can be met with as small an amount of funds as possible.
In the case of a food manufacturing company, a financial manager's responsibilities are the same as for any other industry and include: preparing financial reports, acquiring capital when needed, overseeing investments to protect capital, sharing profits with investors by way of dividends, overseeing long-term and short-term allocation of funds.
In the short-term, funds may be used to buy raw materials, pay the employees, buy machinery, maintain the machinery, and pay for energy among many others.
A company's objective is to increase profitability. Financial management can play a large role here, for instance, as they find and manage investments and acquire capital at the best interest rates and distribute dividends.