Like any other type of management, financial management refers to meeting the goals of the organisation by using effective and efficient methods to manage the finance of the company. Since, it is financial management, it aims and specialises at making optimal use of financial resources in coherence to the organisational needs.
Importance of Financial Management
Financial Management is important as it helps an organisation to achieve its objectives. It is a crucial part of the curriculum as it ensures that an organisation hits all budgetary target and goals so that a business has a better chance of succeeding. Students need to learn how to manage the finances of the businesses as finance is considered as the blood of the business. Without proper financial control, a business cannot exist, let alone succeeding.
Why students seek advice in Financial Management
Finance is already a difficult subject. When it comes to Financial Management it involves two principal subjects, finance and management. It involves and understanding of the in and out of finance subjects plus using managerial skills like decision making for financial decisions. It involves everything from raising finance, to effectively distributing it and controlling it as per the budgets. All this becomes a very complex process and involves practical thinking along the way. This makes the students needing extra help for completing the assignments and homework for this subject as it requires extra amount of detailing along with logical thinking.
Difficulties encountered in Financial Management
Financial management is a blend of management and finance and comes with enough challenges. It has various topics like raising finance, repayment of debt capital, recording transactions, analysing the financial data, publishing statements, cutting cost, increasing profits and sales etc. Each of these topics is a task in itself and financial management is an amalgamation of all of these combined. It involves continuously studying the business environment of find new opportunities to cut costs and make more revenue along doing all the basic tasks involved.
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Financial Management covers a wide range of services. The most crucial ones are-
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- Costing
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