Fundamentals of Financial Management

The term “financial management” refers to the process through which an organization’s finances are planned, organised, directed, and controlled. Financial management is defined as “the activity connected with planning, raising, regulating, and administering finances utilised by the firm” by Guthman and Dougal. Finances play a vital role, hence this area of study focuses on how to acquire and effectively spend money. The term “financial management” refers to the administration of the financial system. Planning, organising, managing, and controlling a business’s financial operations fall within the purview of financial management. Financial management affects every facet of profit and non-profit organisations alike. It’s responsible for a wide variety of tasks, such as raising capital, allocating resources, and monitoring results in the financial realm. As a result, it has become an essential part of every business. As a result of the development of Financial Management as a distinct field of study, finance now serves as a crucial component in every sector of the economy. Money and other liquid assets, such as shares of stock, debentures, and government bonds, are examples of financial inputs.