As we probably are aware that finance is the backbone of each business and its management obliges with special consideration. Financial Management is concerned with the arranging, obtaining and controlling of the finance and the financial resources of an organization.
In the current economical situation, financial management can be characterized as the procurement of finance at the time when it is needed by the organization to fulfill the requirement of financial business operations. This modern financial management also lays emphasis on proficient allotment and productive utilization of money by giving adequate attention for the management of capital.
Here some of the advantages of financial management:
- Financial Management ensures the continuous supply of required capital to the firm and also makes certain that these funds are properly utilized. The team of finance department firstly estimates the upcoming requirements of capital for both short term and long term. Once the budget is finalized for every department of the company, then the requirement of the finance is being fulfilled for each and every department. Financial management deals in all these departments and overall requirement of the organization.
- Financial management is responsible for making arrangement of funds or is responsible for raising funds from different sources available in the market like financial institution, public deposits, banks, shareholder funds etc. While doing this it is also responsible to analyze various factors related to raising funds like dilution of ownership, rate of interest to be charged, conditions to be fulfilled etc.
- The growth and development of an organization depends of its financial wealth. Financial Management maintains the balance between the liquidity and profitability of capital as well as safety of the same as well.
There are lots of skills required to understand and coordinate the activities of financial sector with other departments. A professional degree of MBA in Finance from Institute of Business Studies and Research will prepare you to be an innovative leader in this sector.