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The planning, directing, monitoring, organizing, and controlling of the monetary resources of an organization.
Financial Management is the process of financial planning & forecasting, determining expenditure & profit, fund collecting and disbursing, profit & loss calculating and finacial reporting.
Financial management is concerned with raising of funds for short term and long terms financial requirements and their effective utilization at all stages in the most efficient manner for the achievement of short term and long term objectives of the organization and the scope include:
>>Anticipation of Financial requirements on a time to time basis.
>>Acquiring financial resources through proper procedures and process.
>>Allocation of financial resources in varied assets and working capital.
>>Appropriation of profits to the owner's of capital and interest for debenture holders and the management of reserves and surpluses.
>>Controlling of all financial activities of the organization right from the production management,personnel management, sales and marketing management, business development, Accounting and Internal Audit functions,Support and provide required explanations for activities connected with External Audit.
The efficiency of Financial management determine the Survival, Success and Growth of the Organization throughout its life.
Thanks to colleagues on their answers
Financial management refers to the efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organization. It is the specialized function directly associated with the top management. The significance of this function is not only seen in the 'Line' but also in the capacity of 'Staff' in overall administration of a company. It has been defined differently by different experts in the field.
It includes how to raise the capital, how to allocate it i.e. capital budgeting. Not only about long term budgeting but also how to allocate the short term resources like current assets. It also deals with the dividend policies of the share holders.
Thanks for the invitation
Well..........Good question
Agreed with both answers given by
Mr.:Vrindavan & Mr.:Jetley as well too
Financial management means planning and controlling all things related to the finance of organization. And agreed also with all previous answers. Thanks for invitation.
Financial Management is the process of managing the finances of the organization to achieve its financial objectives. The whole objective of any Financial Management is to aim at a positive cash flow at the end of the day.
The key objectives of any Financial Management process are :
1. Generate Net Positive Cash Flow.
2. Creating more wealth to an Individual and the Organization.
3. Giving a better ROI to the shareholders and investors.
All the above three financial objectives of an organization can be achieved only by implementing a better financial management process. The three key elements of any better financial management process are :
1. Better Financial Planning.
2. Better Financial Control.
3. Better Financial Decision Making.
Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise.
