Financial Management is a business function that deals with how a business uses its resources to achieve its goals. This includes analyzing profitability, expenses, cash, and credit. The goal of this profession is to maximize the efficiency of an organization so that it can carry out its mission and accomplish its objectives. There are many different types of financial management.
Financial management has many different aspects, and can be used for both profit-generating businesses and nonprofits. Most of the activities of a financial manager revolve around planning, forecasting, and controlling expenditures. Other activities include maintaining a budget and issuing P&L statements. Financial managers also perform the FP&A function, which includes scenario planning and forecasting future financial performance.
Financial management is crucial to the success of a business. It determines how the company will pay for operations and growth. A company may seek funding from equity investors, private equity firms, or even sell some of its assets. In any event, it must ensure that it has enough cash on hand for day-to-day operations, purchasing raw materials, and preparing for future growth. In addition, it ensures that all departments are contributing to the mission and strategy of the business.
Obtaining a college degree in accounting or law is an excellent foundation for a career in financial management. Alternatively, a diploma in financial accounting can lead to attractive job opportunities or internships in the field. Emeritus India offers numerous programs, both general and area-specific, in various areas of study.
