Financial Management is the science of managing finances of a business (cash flow) to achieve financial goals and thus to minimize losses and maximize profits. Financial Management also covers identifying potential risks and risk management. A person who manages finances in a business or industry is called finance manager; these people are basically trained in accounting and business finance and holds graduate / post graduate or higher qualification with lots of industry experience.
Financial Management is an interdisciplinary approach which comes midway from corporate finance and managerial accounting. A financial manager scrutinizes the financial data of the company to determine performance. The post of a financial manager often times referred as Manager Finance / Manager Finance & Budget / Manager Accounts & Finance Etc.
Industry experts refer to Financial Management as technique of money management. The term primarily used in the domain of business and finance activities. Meanwhile, financial management is integral part of human life at all levels because every individual needs to look and manage personal finances to lead comfortable life. Finance is like backbone of human life.
Generally, financial management exists at two levels: Personal and Corporate.
At personal level, financial management needs planning according to earning of a person. He / she needs to manage expenditures and save money within the available financial capacity. Also any surplus cash individuals need to invest in right entities so as to get benefit from them in long run. At corporate level financial management involves financial control i.e. cash flow and financial planning i.e. available cash resources and size and time of expenses.
The financial manager maintains the balance between inflow and outflow of money in a company according to budget of the company. Besides, they also help in improving the financial resources of the company. Offering satisfactory financial goals to investors is one of the prime tasks of a company for which competent financial management is the key.
Finance is an industry itself. Financial Managers are required in every small and large corporate house. Considering the needs of eligible financial professionals in industry colleges, universities and institutions across India offers courses in business and finance right from under graduate level. Both short term and full time courses are offered. One can pursue graduate, post graduate program or can go for core research in finance. Like mathematics, English, computers or biology Financial Management is a hot career choice. Various university departments and management institutes offers MBA Finance for graduate students. Admission offered on the basis of entrance examination, group discussion and interview. For exclusive details about MBA in Financial Management click here.