Financial management provides pathways to attain goals and objectives in an organisation. The main duty of a financial manager is to measure organisational efficiency through proper allocation, acquisition and management.The importance of financial management is explained below −It provides guidance in financial planning.It assists in acquiring funds from different sources.It helps in investing an appropriate amount of funds.It increases organisational efficiency.It reduces delay production.It cut down financial costs.It reduces cost of fund.It ensures proper use of fund.It helps business firm to take financial decisions.It prepares guideline for earning maximum profits with minimum cost.It increases shareholders’ wealth.It can control the financial ... Read More

Financial management is the set of activities concerned with planning, organising, directing and controlling the financial activities. Financial management accepts the general management principles for financial performances. Financial management acts like a guidance, where more investment opportunities are available.Scope of financial managementThe scope of financial management is given below −Estimating the requirement of funds.Determining the capital structure.Investment fund.Maximise profits.Maintain core value of organisation.Dividend for shareholders.Retain profits.Objectives of financial managementThe objectives of financial management include −Profit maximisation.Wealth maximisation.Optimum funds utilisation.Ensure safety on investment.Sound capital structure.Functions of financial managementThe functions of financial management are as follows −Estimation of capital requirements.Determination of capital ... Read More

Finance represents the money management and the process of acquiring the funds. Finance is a board term that describes the activities related to banking, leverage or debt, credit, capital markets, money and investments.Business finance tells about the funds and credit employed in the business. It also helps to manage the funds/money to make your business more profitable by considering financial statements (profit and loss accounts, balance sheets and cash flow statements).Types of Business financesThe types of business finances are explained below −Short term financeFinancing the business for a short period of time (less than 1 year) is short term finance. ... Read More