The planning and control of finance function aims at increasing profitability of the concern. It is true that money generates money. To increase profitability, sufficient funds will have to be invested.

Contents of Modern Finance Function:

The modern finance function plays a crucial role in managing the financial aspects of a business. It encompasses various activities and responsibilities that contribute to the overall financial well-being of the organization. Here are the key contents of the modern finance function:

1. Financial Planning and Analysis:
- Developing a comprehensive financial plan to guide the organization's activities.
- Analyzing financial data to evaluate the company's performance and identify areas for improvement.
- Conducting financial forecasting and budgeting to set realistic financial goals.

2. Financial Reporting and Control:
- Preparing accurate and timely financial statements, including the income statement, balance sheet, and cash flow statement.
- Ensuring compliance with accounting standards and regulations.
- Implementing internal controls to safeguard assets and prevent fraud.

3. Treasury Management:
- Managing the organization's cash flow, including cash inflows and outflows.
- Monitoring and optimizing working capital to ensure sufficient liquidity.
- Making strategic decisions regarding investments, borrowing, and foreign exchange.

4. Risk Management:
- Identifying and assessing potential risks that may impact the organization's financial performance.
- Developing risk mitigation strategies and implementing risk management policies.
- Monitoring and managing financial risks such as market risk, credit risk, and operational risk.

5. Financial Decision-Making:
- Evaluating investment opportunities and capital budgeting decisions.
- Assessing the financial viability of new projects or ventures.
- Analyzing the cost and benefits of financing options and making recommendations.

6. Financial Compliance:
- Ensuring compliance with financial laws, regulations, and reporting requirements.
- Coordinating with auditors and regulatory authorities during external audits.
- Maintaining transparency and integrity in financial operations.

7. Financial Technology (FinTech) Integration:
- Incorporating technology solutions to streamline financial processes and enhance efficiency.
- Adopting financial software and tools for financial analysis, reporting, and data management.
- Embracing digitalization and automation to improve accuracy and reduce costs.

In conclusion, the modern finance function encompasses financial planning and analysis, financial reporting and control, treasury management, risk management, financial decision-making, financial compliance, and financial technology integration. These contents are vital for ensuring the financial stability and success of a business organization.

The new approach is an analytical way of dealing with financial problems of a firm.The modern approach considers the three basic management decisions, i.e., investment decisions, financing decisions and dividend decisions within the scope of finance function.