Financial Management Definition
Financial management is the process of planning, organizing, and controlling the financial activities of an organization. It includes the development and implementation of financial plans, the management of financial resources, and the optimization of financial performance.
Financial management is a critical function for any organization. It provides the organizational framework within which financial decisions are made and ensures that these decisions are aligned with the organization’s strategic objectives. Financial management also plays a pivotal role in risk management and in providing decision-support information to other functions within the organization.
The goal of financial management is to maximize an organization’s financial performance. This requires the efficient use of financial resources and the effective management of risks. Financial managers must also be able to provide accurate and timely information to other members of the organization, such as senior executives, boards of directors, and shareholders.
