What is Financial Management?
“Financial management is the activity concerned with planning, raising, controlling and administering of funds used in the business.” – Guthman and Dougal
“Financial management is properly viewed as an integral part of overall management rather than as staff especially concerned with funds raising operations.” – Ezra Solomon
Role of Financial Management in Modern Business
- To Forecasting flows of cash.
- To Raising the funds for smooth operations of the company.
- To manage the internal flow of the cash or funds.
- To control the cost of manufacturing.
- To the management of long-term funds.
- To manage the price of the product.
Importance of Financial Management in Modern Business
- Financial Management Helps to Set Clear financial goal.
- Financial Management Helps organizations in financial planning.
- Financial Management Helps organizations in utilizing and allocating the funds.
- Financial Management Helps to Increases the overall value of the organizations.
- Financial Management Helps to provides economic stability to the organizations.