Financial Management: Theories and Concepts

Abstract

We can define financial management as the management of the finances of an organization to achieve its business objectives. Financial management is a branch of economics that studies how to allocate limited financial resources. There are two aspects of financial management. Financial planning: There is a need to plan to ensure that the organization has enough funds when needed and to invest any excess funds properly. Financial control: Financial control involves setting financial targets and actual performance to targeted performance and taking corrective actions.