Meaning of Financial Management

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Financial Management : Most job apportunity in finance are in financial management; every company needs a financial manager, even a one person operation Financial managers are concerned with the acquisition and allocation of financial resources for a company. They spend most of their time managing working capital.

Management of funds is a critical aspect of financial management. Management of funds act as the foremost concern whether it is in a business undertaking or in an educational institution. Financial management, which is simply meant dealing with management of money matters.

Scope of Financial Management

From time to time it is observed that many firms have been liquidated not because their technology was obsolete or because their products were not in demand or their labour was not skilled and motivated, but that there was a mismanagement of financial affairs. Even in a boom period, when a company make high profits there is also a fear of liquidation because of bad financial management.

Methods of Financial Management

In the field of financing there are multiple methods to procure funds. Funds may be obtained from long term sources as well as from short term sources. Long term funds may be procured by owners that are shareholders, lenders by issuing debentures, from financial institutions, banks and the general public at large.