Coming out of these unusual times financially fitter and stronger would require discipline, perseverance, conservancy tricks and fortitude. Financial management helps organizations with planning, decision making and controlling their financial undertakings. It looks at the following objectives to keep the organization buoyant,
Essentials of Financial Management
-
- Make sure the organization has enough money to sustain it
- Funds from the organization is efficiently utilized
- Create safe investment opportunities for their investors
- Ensure investors get a good return on their investment
- Helps to improve the profitability of the organization
- Provides economic stability
- Encourages employees to save money
Financial management is made up of certain objectives:
-
- A financial plan
- Showcasing policies and regulations
- Determining the capital organization structure
- Financial control
When you look at financial control you must ask these questions
-
- Are the assets being used efficiently?
- Are the assets secure?
- Is the management team working in the best interest of the organization?
Financial management is an essentials decision making process. It involves how organizations raise finances, sell shares and distribute profits. It is also important to increase the overall value of the organization.