What Is Financial Management

Financial management is the process that consists in managing existing resources in a company to ensure that they will be sufficient to cover the expenses necessary in order to this entity can work. This responsibility is managed by one person within the company: financial manager. Through this way, you can take a financial and ordered control of business income and expenses. The financial management of a company has several functions: to determine the need for financial resources by addressing needs, description of available resources, the provision of the resources, etc.; search for funding under the most advantageous way, considering the cost, schedule and other contractual terms, fiscal conditions and the financial structure of the company; financial analysis, including the collection and study of information to get answers regarding the financial situation of the company.

Regarding the organization of the financial side of the business, all depend on the size of it. If the company is large-scale, the importance of the financial system is vital, so it will be included in the organizational role of a financial manager. This person is responsible for implementing the decisions set out in the strategy, according to the vision and mission of the company.