Financial Magament – The Key to Financial Success
Financial management is defined as the discipline or field in an organization that is primarily concerned with expenses, financing, money and credit, so the “organizational might have the means to undertake… Financial management pertains to financial information systems that are used by organizations in managing their financial activities. The discipline of financial management is a branch of management science that seeks to improve the control, measurement, and reporting of the financial data of an organization. Financial management therefore involves the systematic recording, interpretation and utilization of financial data. Financial management thus includes accounting, auditing, financial planning, investment, and taxation.
The term financial management covers a wide range of activities. In this context, financial management also includes the financial policies, rules and procedures that are implemented to control the behavior of an organization’s financial resources. Apart from that, it involves allocation of budget to different economic activities and balancing the distribution of resources. It also involves monitoring and evaluation of the performance of financial resources, identifying trends and patterns regarding financial resources, and making adjustments as necessary. Financial management thus aims to achieve a balance between supply and demand of financial resources, including the allocation of financial resources within an enterprise.
There are many factors that affect the financial management of an organization. These include internal control measures, objectives set by the management in relation to controlling the financial aspects of the organization, risks to the achievement of certain objectives, methods of financial management, financial information management, and other financial issues. The main objective of financial management is to ensure that the financial responsibilities of the organization are effectively and efficiently managed. This is achieved by evaluating and monitoring the performance of financial activities. The financial management helps to meet the financial needs of the organization and hence financial security is one of its primary objectives.