Financial management is mainly concerned with the effective funds management in the business. Finance may also be defined as the art and science of managing money. Business finance is the activity concerned with planning, raising, controlling and administering the funds used in business. Financial management is an area of financial decision making, harmonizing individual motives and enterprise goals.
Importance and Scope of Financial Management
- Financial Planning
- Acquisition of funds
- Proper use of funds
- Financial decision
- Improve profitability
- Increase the value of the firm
- Promoting Savings
Scope of Financial management:
Financial management involves the application of general management principles to particular financial operation.