Financial Management

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Financial Management

TABLE OF CONTENTS
TABLE OF CONTENTS................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Financial management is activity for the organisation. This refers to planning,
controlling, organising and monitoring the financial resources with the motive of achieving
organisational goals & objectives. This is the ideal practice to control the financial activities of
the organisation like the funds procurement, funds utilisation, payments, accounting risks
assessment and all other relating to money. Financial management is the application of general
management principles for financial possession of the enterprise. Efficient management of the
organisational finance provides with regular service and quality fuel for functioning effectively
in the organisation. On the other inability of the company to manage its financial resources could
lead to barriers having severe repercussions on the development and growth of the enterprise.
MAIN BODY
Finance is the life blood of every organisation and it must have a continuous flow of the
fund to and from the organisation. Money makes wheel of business to move fast and smoothly.
Sound plan, efficient production systems and the excellent marketing networks are hampered in
absence of the timely and adequate supply of the funds.
Objectives of the financial management are of ensuring regular as well as adequate
supply of the funds to concerns. To ensure that there are adequate returns available to
shareholder that depends over earning capacity, market prices of shares and shareholder
expectations. Financial management aims at the most efficient utilisation of the funds available
or procured for generating maximum benefits at least costs (Shapiro and Hanouna, 2019).
Financial management also ensure that the financial investments made by the company are safe
and secure, ventures are reliable or the other companies are giving adequate returns over their
investments in which the funds are invested. Objective of the financial structures is to have the
sound capital structure with the most adequate mix of debt and equity where the cost kept at
minimum.
Sound financial management is very essential for the company as all the other activities
are dependent over the availability of funds for carrying out the business operations. Business
firms require finance for commencing the business operations, carrying out the operations and
the expansion for growth. Finance is an essential operative function of the organisation.
Companies are required to raise funds from several numbers of sources and utilising those funds
for adding value. Financial management is required to have the efficient policies and
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