Significance of financial Management

Significance of financial Management

Financial management is all about managing funds in a proper way. Finance is a term that we come across every moment. It is associated with every transaction that is conducted in the form of borrowing and depositing money with a financial institution or bank. It is related to spending, saving and lending of money. The society and moreover the world runs depending on a sound economy. A good and sound economy is a symbolism of trouble free life. With increasing consciousness about money people are becoming concerned about judicial management of funds while running a business, company or leading life. Whatever may be the situation, financial management is necessary at every step.

Petals of financial management

Financial management has different petals that define different situational needs.

Corporate Finance

It is all about raising and investment of funds in a company and analysis of risks associated with it. It deals with feasibility study of a project and thereby determines the profitability ratio out of such investment.

Running a Business

If it is something related to business then finance is quite essential. It is necessary to run a company, employ people, buying assets and thereby investing on projects to seek profit out of it. Finance is necessary irrespective of size of business.

Personal Management

Financial management is equally important in one’s life. One should plan at the very beginning in terms of funds necessity for leading a specific life style. Further for retirement planning and buying for personal assets it is necessary to plan and arrange for funds accordingly.

Posted by Annabelle Jones 2/12/15

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