Financial Management: Meaning, Importance, and Role of a Financial Manager in Tesco

Financial
Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
Financial Management ...............................................................................................................3
Importance of Financial Management........................................................................................3
Role of financial Manager in a Tesco200...................................................................................4
Sources of Finance......................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
Books and Journal.......................................................................................................................6

INTRODUCTION
In the current market scenario, it is extremely vital and valuable for an organisation to be
equipped with adequate financial resources so as to regulate the cash inflows and outflows of the
same. Financial Management assists enterprises in carrying out effective financial practices in
the organisation (Chandra,2020). The report discusses the the meaning and importance of
financial management in an organisation in order run the daily operations productively. It details
about the role and duty of a financial manager of the leading and multinational organisation
Tesco Plc so as to facilitate the flow of funds effectively in Tesco. The report also highlights the
sources of funds available to the business enterprises in order to procure adequate and
satisfactory funds from the concerned institutions.
Financial Management
Financial Management can be characterized as a procedure of regulating the financial
resources i.e. expenses, revenues, incomes, losses, profits, funding etc. of a business entity. It can
be termed as a practice wherein the organisations work to operate, control and manage the
financial activities of an enterprise. It promotes the optimum utilization of funds available with
the organisation, regulation of the payment, accounting principles and procedures, assessment of
the financial risk etc. It is very necessary for business organisations to have systematic financial
management system so as to ensure that the management operations of the respective
organisation are accomplishes efficiently.
Importance of Financial Management
Financial Management is an essential and prominent element of an organisation's
management functions due to the following listed reasons :-
Financial Planning : Financial planning is a method that facilitates in identifying,
measuring and controlling the future financial conditions of an organisation. Financial
management assist an enterprise in formulating and processing effective financial plans that can
help the Tesco in acquisition of financial resources and regulating their financial operations
effectively and efficiently (Madura,2020).
Utilisation and allocation of funds : Financial management serves an organisation in
effective utilisation and allocation of their funds in order enhance their current operation in the
business environment and assist the same in achieving higher benefits as well.