Financial Management

A full service trading firm offering commodity and online futures to clients worldwide. Financial Management is one of the crucial functional areas of management, because the success of a company wholly depends on the proper use of its financial resources. The significance of financial management cannot be overstressed. Sound financial management is necessary in all organizations whether big, small or medium.

Financial Management is directly related with the managerial activities like raising and utilization of available funds in the best economic way. Financial management refers to that part of the management activity, which is concerned with the planning, and controlling of firm’s financial resources.

It deals with discovering diverse sources for raising funds for the firm. The sources must be appropriate and cheap for the needs of the business. The most appropriate use of such funds also forms a part of financial management. As a separate managerial activity, it has a recent origin. It is as useful to a small concern as to a big unit.

Financial management can be defined as the process of making financial decisions with the ultimate objective of maximizing the shareowners' wealth. In the world of finance, financial management is also known by other names like corporate finance, business finance and managerial finance. It is denoted as FM.

Financial activities should not be only limited to procurement of funds, but also to other prospects of funding like determining the financial needs, availability of funds, cost of financing, capital budgeting, preserving liquidity, loaning and borrowing policies and direction of fixed and current assets and evaluation of business firm.

Posted in

• budgeting
• business finance
• business finance budgeting
• capital budgeting
• capital finance
• financial management
• project budgeting

• Read more