People without a background in commerce might assume that financial management is a tedious profession comprising unending balance sheets and constant discussion of money.
Financial management, however, entails more than that.
Management tasks and handling an organization's financial resources are included in financial management. The most important component of any corporation is budgeting and organizing cash, and financial managers are the backbone of any organization.
The significance and use of financial management in India and around the world will be covered in this write-up.
The significance of financial management
Several factors make sound financial management essential:- An organization's economic growth and stability are guaranteed by sound financial management.
- Financial managers assist an organization in obtaining funding for operational expenses.
- Financial managers assist businesses in using funds more effectively.
- A financial manager's primary duty is to recommend the best investment alternatives for the business.
- They reduce the risk involved in all investments.
- The proper judgments should be made by financial managers to maximize corporate profit.
- The company's finance managers work to keep taxes as low as possible.
Financial Management's Scope
Financial management is a crucial component of overall management and is mostly focused on the collection and utilization of finances within an organisation. We must examine the essential elements that greatly affect the range of financial management in order to comprehend this.- Increasing profits
- Maximization of wealth
- Planning and Financial Analysis
- Managing Cash Flow
- Investing Choices
- Management of Risk
