Financial-Student - Finance is the lifeblood of business organization. It needs to meet the requirement of the business concern. Each and every business concern must maintain adequate amount of finance for their smooth running of the business concern and also maintain the business carefully to achieve the goal of the business concern.
The business goal can be achieved only with the help of effective management of finance. We can’t neglect the importance of finance at any time at and at any situation. Some of the importance of the
financial management is as follows:
Fіnаnсіаl Plаnnіng
Financial management helps to determine the
financial requirement of the business concern and leads to take
financial planning of the concern.
financial planning is an important part of the business concern , which helps to promotion of an enterprise.
Aсԛuіѕіtіоn оf Fundѕ
Financial management involves the acquisition of required finance to the business concern. Acquiring needed funds play a major part of the
financial management , which involve possible source of finance at minimum cost.
Prореr Uѕе оf Fundѕ
Proper use and allocation of funds leads to improve the operational efficiency of the business concern. When the finance manager uses the funds properly , they can reduce the cost of capital and increase the value of the firm.
Fіnаnсіаl Dесіѕіоn
Financial management helps to take sound
financial decision in the business concern.
financial decision will affect the entire business operation of the concern. Because there is a direct relationship with various department functions such as marketing , production personnel , etc.
Imрrоvе Prоfіtаbіlіtу
Profitability of the concern purely depends on the effectiveness and proper utilization of funds by the business concern.
financial management helps to improve the profitability position of the concern with the help of strong
financial control devices such as budgetary control , ratio analysis and cost volume profit analysis.
Inсrеаѕе thе Vаluе оf thе Fіrm
Financial management is very important in the field of increasing the wealth of the investors and the business concern. Ultimate aim of any business concern will achieve the maximum profit and higher profitability leads to maximize the wealth of the investors as well as the nation.
Prоmоtіng Sаvіngѕ
Sаvіngѕ аrе роѕѕіblе оnlу whеn thе buѕіnеѕѕ соnсеrn еаrnѕ hіghеr рrоfіtаbіlіtу аnd mаxіmіzіng wеаlth. Effесtіvе fіnаnсіаl mаnаgеmеnt hеlрѕ tо рrоmоtіng аnd mоbіlіzіng іndіvіduаl аnd соrроrаtе ѕаvіngѕ. Nоwаdауѕ fіnаnсіаl mаnаgеmеnt іѕ аlѕо рорulаrlу knоwn аѕ buѕіnеѕѕ fіnаnсе оr соrроrаtе fіnаnсеѕ. Thе buѕіnеѕѕ соnсеrn оr соrроrаtе ѕесtоrѕ саnnоt funсtіоn wіthоut thе іmроrtаnсе оf thе fіnаnсіаl mаnаgеmеnt.
