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Financial management involves planning, controlling, implementing and monitoring fiscal policies and activities, including accounting and auditing revenue, expenditure, assets and liabilities.
It embraces daily cash management as well as the formulation of short-, medium- and long-term financial objectives, policies and strategies in support of the organisation’s business.
Financial management also includes planning and controlling capital expenditure, managing assets, liaising with the treasury and making decisions related to funding and performance.
Good financial management is critical to the success of any organisation, whatever its size and whether or not it is in the public, private or voluntary sector.
In the public sector, the rendering of accounts to public scrutiny is key to accountable government. Financial records are produced in every area of financial management.
If these records not are well managed, the financial management function suffers. Therefore, financial records management and records management are closely intertwined.
Financial management makes an important contribution to government, particularly in the areas of
accountability
efficiency
ensuring resources are matched to objectives
economic stability.
