Financial Management: managing your finance
“Financial management is the process of putting the available funds to the best advantage from the long term point of view of business objectives.” – Richard A. Brealey
Financial Management is planning, organizing, directing and controlling the financial activities such as procuring and utilizing the funds of the organization. It is thus, the management of finance for the fulfillment of financial objectives of an organization/company. Financial management requires a lot of expertise and the right skill sets. This expertise in the concept of finance can be gained through appropriate financial training programs and courses in financial management.
The basic objectives of financial management are:
- -Wealth creation for business
- -Generation of cash
- -Provide an adequate ROI
Financial management can’t be done in isolation. It is basically an amalgamation of various financial decisions. Financial management, in its essence, includes:
- -Investment decisions
- -Dividend decisions
- -Financial decisions
Financial management is about procuring finance for the company at the lowest cost possible and allocating it in a way that it earns the highest return on investment. It thus refers to planning and controlling the finance of a company.
Financial management works on the principle of 5As. This refers to:
- -Anticipation: This implies that financial management estimates how much finance is required for the organization.
- -Acquisition: It acquires finance for the company for different sources.
- -Allocation: It uses this finance to allocate it in the most profitable assets-fixed or current.
- -Appropriation: It includes proper distribution of the generated profits among the various stakeholders like shareholders, debenture holders etc.
- -Assessment: It also controls and analyses the profitability of various financial activities of the company.
Financial management is one of the most crucial areas of management. It is, in a way, the most important functional areas on management because all other areas depend on this function of management. Efficient and effective financial management ensures not only survival but it also lays down the path for growth and success of the organization.
To be a successful financial manager, one should have a knack of money management. But, even if you aren’t born with the quality of managing finance efficiently it can be easily gained through short term or full time course in financial management. Financial management as a career option can be very lucrative option because financial management is that function of management which will always be in demand even if the economy faces a recessionary trend.
Since financial management is one the most challenging yet important function of management, we at EduKart.com have designed online certificate courses in financial management. These courses provide guidance in various fields of finance like financial management, banking ops and financial services management, Stock market, wealth management, CFA (part 1) preparation, FRM (part 1) preparation and FRM (part 2) preparation. If you want to enter and excel in the burgeoning financial sector then you can take up these industry relevant courses.
Visit the following link to know more details about the courses: EduKart.com financial management courses