Financial management

Financial management refers to the efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organization. It is the specialized function directly associated with the top management. The significance of this function is not seen in the 'Line' but also in the capacity of 'Staff' in overall of a company. It has been defined differently by different experts in the field.

The term typically applies to an organization or company's financial strategy, while personal finance or financial life management refers to an individual's management strategy. It includes how to raise the capital and how to allocate capital, i.e. capital budgeting. Not only for long term budgeting, but also how to allocate the short term resources like current liabilities. It also deals with the dividend policies of the share holders.

Definitions of Financial Management

"Financial management refers to proper and efficient use of money" and it plays a significant role in analyzing to invest in profitable business enterprise..Return on Investment must be greater than the invested amount..By Ibrar Alam.

Objectives of Financial Management

Scope of Financial Management

Financial Management for Start Up

For new enterprises, it is important to make a good estimation on costs, sales.[5] Consideration on appropriate length sources of finances can help businesses avoid the cash flow problems even the failure of setting up. There are fixed and current sides of assets balance sheet. Fixed assets refers to assets that cannot be converted into cash easily, like plant, property, equipment etc.[6] A current asset is an item on an entity's balance sheet that is either cash, a cash equivalent, or which can be converted into cash within one year.[7] It is not easy for start ups to forecast the current asset, because there are changes in receivables and payables.[8]

Online Financial Management Tools

See also


Wikiquote has quotations related to: Financial management
  1. "Financial Management: Definition, Aims, Scope and Functions". The Next Generation Library. Retrieved 2015-11-04.
  2. "Business Finance and Financial Management". UpFina. Retrieved 2015-11-04.
  3. "Wealth Maximization". eFinanceManagement. Retrieved 2015-11-04.
  4. "Capital Structure Definition | Investopedia". Investopedia. Retrieved 2015-11-04.
  5. Nobanee, Haitham; Abraham, Jaya (2015). "Current assets management of small enterprises". Journal of Economic Studie.
  6. "What are fixed assets? | The e-conomic Accounting Glossary". Retrieved 2015-11-04.
  7. "Current Asset Definition - AccountingTools". Retrieved 2015-11-04.
  8. "The Top 4 Cash Flow Forecasting Mistakes". Entrepreneur. Retrieved 2015-11-04.
  9. "Salesforce Supplier Welcome | Taulia". Retrieved 2015-11-04.
  10. "Hassle-Free Bookkeeping For Small Business". Hassle-Free Bookkeeping For Small Business. Retrieved 2016-09-15.
  11. "Simplify Your Business Finances - BodeTree". BodeTree. Retrieved 2015-11-04.
  12. "Bookkeeping goes online". Retrieved 2016-11-29.
  13. "Features". Retrieved 2015-11-04.
  14. "Services - Intelli Bookkeeping". Intelli Bookkeeping. Retrieved 22 April 2016.
  15. faustin.G. karamage
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