Significance of Financial Management

IBSAR

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.

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MBA in Financial Management

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Financial management is the activity that is responsible for planning and controlling of the firm’s financial resources. In reality, it is the planning, directing, monitoring, organizing, and controlling of the monetary resources of an organization. Financial sector has become stronger in terms of capital and the number of customers in India.

Responsibility of an MBA in Financial Management
An MBA degree in Financial Management helps the manager understand the financial problems and find the right solutions to these problems, by making a complete analysis of it. So MBA in this field makes the tough battle ahead in the field of Financial Management incredible.

Benefits of efficient financial management in the organization
In financial management, financial problems are analyzed and considered. Study of the trends of actual figures is tested and ratio analysis is done. All management decisions on funding are made after considering the report prepared by the finance manager. Financial management is the basis for management decisions.

Greater the business risk, greater is the expectation of benefits. Financial management maintains the balance between risk and profitability. There is always coordination between the various treaties of the company. Financial management is mainly centralized in nature. Other activities may be decentralized but only one department for financial management.

There are two main aspects of Financial management, namely the acquisition of funds and effective use of these funds. In the acquisition of funds, you can see here that the funds may come from different sources and the funds from different sources have different characteristics in terms of cost, risk and financial management control-speak.

How does MBA in Financial Management help in career growth?
MBA Finance increases employment opportunities, help in changing careers or better qualifies one for a career opportunity or support to start their own business. Finance MBA teach a student in accounting, economics, banking, market structure etc. that are vital to any business.