I will discuss the various concepts related to financial management. But first thing we need to understand the definition of financial management. Finance is like the blood for the business as blood is essential for the human body; similarly finance is essential for the business. No business can run without adequate finance. That’s why it is very essential to manage the finances of the business. Financial management means to plan and control the financial resources of the firm. Financial management helps in giving the answers to the following questions.
- What are the financial requirements of the business?
- What kind of capital structure to be decided?
- Which are the suitable sources of the finance?
- Which pattern of investment to be used?
- How to implement financial controls?
- How to utilize the surplus?
In future articles, I will discuss all the concepts related to the financial management. I hope you will enjoy. Please leave the comment as feedback.