Importance of Financial Management in Business

Finance

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION 1......................................................................................................................................1
Financial Management and its Importance.................................................................................1
SECTION 2......................................................................................................................................2
Discussing financial statements and use of ratios.......................................................................2
SECTION 3......................................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Finance corresponds to the administration of funds as well as the acquisition of funds.
Finance is a boarder concept that refers to operations involving financing, debt, lending, financial
markets, assets, including investments. The term "business finance" applies to the utilization of
funds and credits in an enterprise. This also facilitates management of funds/monies in order to
increase the profitability of a company by reviewing business’s financial statements (Ozili,
2020). This report based on the analysis of applied business finance. In this report consist of
definition of financial management with its importance. Along with discuss main financial
statement with key ratios to analysis the performance of business. Moreover, calculate all
missing amounts from different templates and interpret them. At the end of the report, define and
discuss the procedure to enhance their financial performance.
SECTION 1
Financial Management and its Importance
In every organisation, financial management is critical practice. It is the practice of
scheduling, coordinating, managing, and reporting financial capital in order to meet the aims and
targets of an entity. It is crucial practice for managing an entity 's fiscal operations, like fund
acquisition, fund allocation, billing, transfers, risk evaluation, and everything else involving
monies/funds. In other word, financial management implies to application of strategic
management concepts to an organization's financial assets. Quality gasoline and routine service
are provided by proper financial management in order for a company's processes to run
smoothly. If an enterprise's finances aren't handled appropriately, it can encounter obstacles that
could stifle its progression and advancement.
In this regard, following are several major importance of practices of Financial
management in effective performance of enterprise, as follows:
 Financial Planning: Financial management facilitates in determining the financial
requirements of a corporation issue and subsequently contributes to fiscal planning
Financial planning is essential aspect of business that aids in effective growth of
business-entity (Bilan and et.al, 2019).
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