The Importance of Financial Management

Financial management is one of the most important aspects of business. To start up or even run a successful business, you will need excellent knowledge of financial management. 

What is financial management?

Financial management refers to the strategic planning, organising, directing, and controlling of financial undertakings in an organisation or institute. It also includes applying management principles to the financial assets of an organisation, while also playing an important part in fiscal management. Here are some of the objectives involved:

Maintaining enough supply of funds for the organisation. 

Ensuring shareholders of the organisation get good returns on their investment. 

Optimum and efficient utilisation of funds. 

Creating real and safe investment opportunities. 

Why is financial management important?

This form of management is important for various reasons such as:

Helps organisations in financial planning. 

Assists organisations in the planning and acquisition of funds. 

Helps organisations in effectively utilising and allocating the funds received or acquired. 

Assists organisations in making critical financial decisions. 

Helps in improving the profitability of organisations. 

Increases the overall value of firms or organisations. 

Provides economic stability. 

Encourages employees to save money, which helps them in personal financial planning. 

Why study financial management?

* Diverse career opportunities. 

* Improve interpersonal skills. 

* Career growth. 

* Higher salary packages. 

* Greater job prospects. 

* Builds personality.