Introduction to Financial Management: Role, Objectives and Elements of Financial Management

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Financial Management

  • Goals of financial management
  • Understanding financial statements
  • The analysis of financial statements
  • Financial planning
  • Time value of money
  • Risk and return
  • The valuation of financial assets

What is Financial Management?

  • Sound financial management is a crucial aspect of any thriving business.
  • The management of the finances of a business/organisation in order to achieve financial objectives.
  • Taking a commercial business as the most common organizational 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

Professionals who possess basic financial management knowledge and skills are often at an advantage in the talent market, and by the same token, entrepreneurs seeking to grow a business need to possess these skills to ensure success.

Role of Financial Management

Role of Financial Management
  • The planning,
  • Directing,
  • Monitoring,
  • Organizing, and
  • Controlling of the monetary resources of an organization.

Objectives of Financial Management

  • Fix the target of finance manager.
  • Achieve different objective of financial management.
  • Understand the basics of finance and financial management within a business

context, including:

  • How to budget,
  • Read financial statements,
  • Conduct a cash flow analysis,
  • Cut costs and perform several other finance-related functions.

Elements of Financial Management

There are three key elements to the process of financial management:

  • Financial Planning
  • Financial Control
  • Financial Decision-Making

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