Financial Management: Importance, Role of Manager, and Sources of Finance

Task 4

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
What is financial management....................................................................................................3
Importance of financial functions within organizations..............................................................3
Describe the role of the financial manager within company.......................................................4
What sources of finance are available to an organization? What options does a business have
to get capital to start the business – mention short term and long term finance options............4
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
In business financial management is defined as a set of financial practices which is used
by organization. Due to the effective use of financial management company is able to run the
financial activities smoothly. Strong financial management helps the firm to decrease financial
loss and expenditure in their activities for long time. The report will cover explanation about
financial management, importance of financial management within organization and others. It
further covers describe the role of financial manger within organization and the sources of
finance.
TASK
What is financial management
The finaancial management is basically considered with various business functions which
includes profitability, expenditure, cash and credit (Al-Blooshi and Nobanee, 2020). An example
of financial management is the work accomplished by an accounting department for
orgaanization. The main work of accouting department is to control the cashflow of complany in
efficient manner for long time. Without the accounts departments company is not able to sustain
their performance and productivity for long time. For all types of business activities whether it is
hr or marketing, the accounts departments will take final decision regarding providing fund to
them.
Importance of financial functions within organizations
For organization financial management have various importance which are given below -
 Financial planning – It is one of the important element for organization regarding
financial activities. With help of effective financial planning organization is able to run
their activities in smooth and systematic manner. With help of planning company is able
to reduce their financial loss at higher rate.
 Protecting funds – This is the sercond important aspect of financial management of
financial management within company. One has to measured the areas where cash are
needed and allocate it in effective manner in various areas for running the functions
smoothly. Overspending on one project and impact other business operations as they may
lack finance in many cases.