Importance of Financial Management and Financial Statements

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Table of Contents
Section1...........................................................................................................................................3
Section 2..........................................................................................................................................4
Section 3..........................................................................................................................................8
Section 4........................................................................................................................................10

Section1
The importance of financial management includes:
Cash flow control
Money management estimates the amount of funds needed to complete the business. The
valuation of essential resources is the key and essential skill of money management.
Fundraiser
When evaluating the financing required by a company, fund managers are responsible for
obtaining such funds. Fund managers choose from a variety of sources available to raise
subsidies such as offers, bonds, promotions and so on, they choose the one that provides easy
financing and has fewer conditions attached.
Determination of the capital structure
Money management selects the appropriate capital design of the association. He chooses the
level of value and responsibility that will be remembered for the capital. The legitimate harmony
of responsibility and value that limits the cost of capital should be achieved.
Appropriate Use of Goods
Money management ensures that all funds will be used correctly in the company. Fund managers
monitor the usage, everything that is considered and make sure the assets have better assets.
Before allocating any business to any business path, they perform a proper risk assessment and
its return.
It works with cost control
Money managers focus on controlling all business-related expenses. They set up a spending plan
for all the company's businesses and make sure all costs are in line with the pre-set spending
plan. Money managers take all measures of recovery if the expenditure is found to be higher than
the pre-specified spending plan.
Better disposal of excess