What is Financial management?

Financial management’s major purpose is to purchase, allocate, and govern funds for an organisation. Investment, finance and dividend decisions are the three primary sorts of decisions it makes. You can pursue your career ambitions and work in various settings in professions such as Financial Planner, Financial Leader, and so on, thanks to the ever-expanding range of Financial Management.

Financial management is the process of organising, planning, managing, and directing all financial activities in a company, including fund utilisation and procurement. In simple terms, financial management makes decisions on the size of investments, the use of capital, the most efficient use and allocation of assets, and profit maximisation for a company.

A wide range of financial management strategies is employed in this process to develop the proper plan and strategy to assure the best and most efficient allocation of money, their utilisation, and profit maximisation. To grasp the extent of Financial Management, you must first familiarise yourself with four variables.

These elements primarily consist of the various types of decisions that financial management makes in an organisation, including

1. Investment Decisions
2. Financing Decisions
3. Dividend Decisions
4. Liquidity Decisions.