Course Content
introduction
At its core, financial management is the practice of making a business plan and then ensuring all departments stay on track. Solid financial management enables the CFO or VP of finance to provide data that supports creation of a long-range vision, informs decisions on where to invest, and yields insights on how to fund those investments, liquidity, profitability, cash runway and more. ERP software can help finance teams achieve these goals: A financial management system combines several financial functions, such as accounting, fixed-asset management, revenue recognition and payment processing. By integrating these key components, a financial management system ensures real-time visibility into the financial state of a company while facilitating day-to-day operations, like period-end close processes.
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What is financial management?
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Draft LessonFinancial Management: Meaning, Scope, Objectives & Functions
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Types of Financial Management?
What Are the Three Types of Financial Management? The functions above can be grouped into three broader types of financial management: Capital budgeting Relates to identifying what needs to happen financially for the company to achieve its short- and long-term goals. Where should capital funds be expended to support growth? Capital structure Determine how to pay for operations and/or growth. If interest rates are low, taking on debt might be the best answer. A company might also seek funding from a private equity firm, consider selling assets like real estate or, where applicable, selling equity. Working capital management As discussed above, is making sure there’s enough cash on hand for day-to-day operations, like paying workers and purchasing raw materials for production.
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What is the financial management cycle?
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Financial Management 101
About Lesson

What is financial management?

If you are interested in learning more about the responsibilities of a finance role, you might be wondering “What is financial management?”. Financial management involves planning, organizing, controlling, and monitoring the company’s financial activities to ensure that it has sufficient funds to operate effectively and to achieve its long-term goals. Financial management also involves making decisions about how to invest the company’s funds and how to raise additional funds when neccessary. It also includes determining how to allocate those funds in a way that can help maximize the company’s return on investment.

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