Financial Management

Finance

Definition: Finance

Concerned with resource allocation as well as resource management, acquisition and investment.

Deals with matters related to money and the markets.

The study of how investors allocate their assets over time under conditions of certainty and uncertainty

Financial Financial ManagementManagement

Financial Management: Definition Financial management is an integrated

decision making process, concerned with acquiring, managing and financing assets to accomplish overall goals within a business entity.

Speaking differently, it is concerned with making decisions relating to investments in long term assets, working capital, financing of assets and so on.

What is Financial Management?

Financial management capacity is a cornerstone of organizational excellence.

Financial management pervades the whole organization as management decisions almost always have financial implications.

Meaning of Financial Management

Financial management entails planning for the future of a person or a business enterprise to ensure a positive cash flow, including the administration and maintenance of financial assets.

The primary concern of financial management is the assessment rather than the techniques of financial quantification.

Some experts refer to financial management as the science of money management.

Importance of Importance of Financial Mgt.Financial Mgt.

Importance of Financial Management Financial management is concerned with

procurement and utilization of funds in a proper way. It is important because of the following advantages:

1. Helps in obtaining sufficient funds at a minimum cost.

2. Ensures effective utilization of funds.

3. Tries to generate sufficient profits to finance expansion and modernization of the enterprise and secure stable growth.

4. Ensures safety of funds through creation of reserves, re-investment of profits, etc.

Financial Analysis

and Planning

Review of Accounting