What is Financial Management

Financial Management means management of finance or money invested in the business. The efficient use of financial resources in the best possible way. How To Get Finance for the business and how to use the money for the growth of the business and ultimately it is helpful for meeting the objectives of the business.

  

Financial Management covers four important factors: 

  

1. Estimation of Financial Requirements whether it is fixed or working capital 

2. Determination of Capital Structure 

3. Procurement of Financial Resources 

4. Measurement of Revenues and Savings in the best possible way. 

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Financial Management is a service function for business and industrial Enterprises. It provides services function in the areas of earnings or spendings or both and owning and borrowing the funds or both. 

  

It is a Operating Function For Financial Institutions. It provides managerial actions for financing of the funds. Especially, it provides management of all activities of the enterprise in financial related matters. It helps in setting out policies and approximates the procedures of financing in the business.

  

Thus we can say that Financial Management helps the organization in the management of funds utilization in and outside the organization and keeps a check on credit worthiness and avoid the business in difficult financial situation by providing guidance and setting policies.