Financial Management is the process of managing the financial resources, including accounting and financial reporting, budgeting, collecting accounts receivable, risk management, and insurance for a business.
In other word we can say …The management of the finances of a business / organisation in order to achieve financial objectives
Taking a commercial business as the most common organisational structure, the key objectives of financial management would be to:
• Create wealth for the business
• Generate cash, and
• Provide an adequate return on investment bearing in mind the risks that the business is taking and the resources invested
There are a number of alternative ways you can handle this. You can manage everything yourself; hire an employee who manages it for you; keep your records inhouse, but have an accountant prepare specialized reporting such as tax returns; or have an external bookkeeping service that manages financial transactions and an accountant that handles formal reporting functions. Some accounting firms also handle bookkeeping functions. Software packages are also available for handling bookkeeping and accounting.
It takes asset management, personal financial management, public financial management, money management and so on. All the major universities inIndiaand abroad, financial management has been included in the curriculum as a foremost discipline of academics. Not only does the study of financial management help you reach a serious managerial position, it also makes you deal with money better. Since there is always a significant amount of risk involved with financial dealings, studying financial management can prepare the ground for a better and secure money management.
The National Institute of Financial Management conducts a host of Financial Management programs for the aspiring students. In case you are a working professional looking to give more weightiness to your resume, you can easily ponder over their online MBA course and management training. Other financial management programs include online accounting course, stock trading, financial planning, real estate courses, etc. See how you can qualify for a university degree without having to attend classes physically.
An accounting system defines the process of identifying, measuring, recording and communicating financial information about the business. So, in a sense, the bookkeeping function is a subset of the accounting system. A bookkeeper compiles the information that goes into the system. An accountant takes the data and analyzes it in ways that give you useful information about your business. They can advise you on the systems needed for your particular business and prepare accurate reports certified by their credentials. While software packages are readily available to meet almost any accounting need, having an accountant at least review your records can lend credibility to your business, especially when dealing with lending institutions and government agencies.