What is Financial Management?

Asked By:- Amit Topiwala

Financial management is the term referring the backbone of any system from efficient and effective planning and projection to arranging, controlling and investing followed by return to harmonize business motives and goals. It includes financial planning in line with the objective of an organization considering the real time business risk involved, market fluctuation and resource investment both tangible and intangible, wealth creation, cash generation, proper fund allocation at various identified cost centers at the right time to meet the business requirements and productivity, judicious use of capital, financial monitoring and audits to secure the business objective and assets in the best interest of the organization in accordance with business rule, key financial decision making and investment, and return as a whole. It reflects the complete cycle of financial planning and its execution from arrangement, investment and disbursement. The general notion of financial management is the arrangement of funds at convenient (lowest possible) cost and channelizing the funds for maximum returns. Here, we commit one of the most horrendous financial mistakes in understanding the phrase. Collection and investment for maximum return is good and can be treated as a part of financial management but without financial planning and its execution, it makes incomplete sense.

Answered By:- Expert 
Good One......!

Answered By:- Patel Mansi

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