Financial Management

Definition of Financial Management as it relates to Business

Financial Management refers to the systematic process of planning, organizing, directing, and controlling financial activities such as procurement and utilization of funds of an organization or a business entity. It involves the application of management principles and techniques to ensure the financial resources are used effectively and efficiently to achieve organizational goals. Financial Management includes forecasting, budgeting, financial reporting, cost accounting, cash management, risk management, and investment decisions. It plays a crucial role in ensuring the long-term sustainability and profitability of a business by aligning financial objectives with strategic goals, optimizing resource allocation, and mitigating financial risks.

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