What is financial management?

What is financial management?

The basic interpretation of the term financial management is efficient and effective management of money (funds) to accomplish the foremost objectives of an organisation. It involves many important aspects the major one being the capital budgeting, which in turn includes the methods by which an organisation can increase their capital and also allocate the same with uniformity. Allocating the short term resources, like current assets, is also an important part of financial management. It also deals with the dividend policies of the share holders. Financial management is a very broad term and includes various different fields which are mentioned below:
Managerial finance, a branch of finance concerned with the managerial significance of finance techniques. Corporate finance, a branch of finance concerned with monetary resource allocations made by corporations. Financial management association, an organisation set up for finance and economics students and professional. Financial management for IT sectors, deals with financial management of IT assets and resources. Financial management also leads to financial planning and thus financial planners. Financial management is very wide and broad and has a bright future.