What is the Ministry of Finance Administration?
Administration of the Ministry of Finance is the process of controlling the liquidity and financial situation of the company by manipulating its cash, cash equivalents, debt and investment. It is a strategy that the company accepts to balance cash flows, investment opportunities and capital structures against financial risk management and future needs. In a large corporation, the Ministry of Finance Administration would probably fall within the competence of the CFO (CFO), perhaps with the help of the Ministry of Finance or Cash. Excessive income could be reinvested in operations used to expand, distribute shareholders as dividends or left as part of the company's cash in hand. If the corporation decides to keep the money at hand, it must be best used as a liquid asset. The money cannot sit somewhere in the business vault as a kind of trade for a business decline. It is the accumulation of liquid holding of the company, items that could easily be transformed into cash if the corporations are borneebed to raise money quickly. In many ways, it is the same as the box office of any organization or association that maintains its reserve cash in the chateau, except for a much more sophisticated level.
One of the primary obligations of the cash register administration is to propose a strategy for investing excessive cash and identifying suitable investment opportunities. This could probably include the management of bank accounts and short -term investments, investing in foreign currencies and cooperation with external investment bankers on other occasions. CFO MUST MUST HAVE A RISK ACCORDING The corporation is willing to take over with its cash reserves, and at the same time keep in mind that the aim is to maximize the value of the possession.
Administration of the Ministry of Finance not only deals with excessive cash and accompanying investments, but also solves the decision on whether to issue more business debt in the form of shares and DLUhopis to raise money. The task is not only the correct use of cash, if there are excessive amounts, but also increase it if necessary. It also deals with the purchase of shares back from the market when it is in the interest of corporation to send its capital position.