Importance of Financial Management and Financial Statements

Individual Report

Table of Contents
INTRODUCTION ..........................................................................................................................3
Section 1...........................................................................................................................................3
Define and discuss the concept and importance of financial management ................................3
Section 2...........................................................................................................................................4
Discussion of financial statement and use of ratio......................................................................4
Section 3...........................................................................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Financial Management is a concept of business management that highlights upon the
planning, organisation as well as monitoring of the financial resources of the business firm so as
to alleviate the financial performance of the concerned business institution (Kunz and Staehle,
2020). The proposed report focuses upon the concept as well as benefits associated with financial
management. It also incorporates a discussion about the financial statement and ratios. The
business review template is also facilitated in the respective report as well as the description of
case study and improvement process in relation to the same is also mentioned under the
respective report.
Section 1
Define and discuss the concept and importance of financial management
Financial Management
Financial management can be described as a business operation that is concerned with
leading effective financial activities in order to alleviate the overall financial profitability of the
business firm. It is a significant part of an organisation and enables the same to achieve higher
profit generation within the business environment (McCosker, 2021). It is necessary for every
business organisation to concentrate on financial management in order to manage the flow of
funds in a productive way and lead to be better better financial outcomes as well.
Importance of Financial Management
There are several perks and benefits associated with the implementation of financial
manage practices within an organisational setting. Few of the same are mentioned below :-
 The systemic and competent financial management operations helps to promote financial
growth as well as also provides assistance in maintaining economic stability within the
enterprise.
 It ensures the optimum amount of cash flow is incurred within the business firm so as to
lead the business operations of different department without any interruption. This
provides clarity of financial position before management of a company and provides with
managers and leaders of the business firm to test respective policy or strategy undertaken
in an organisational structure to pursue desired goals and objectives of the workforce