IMPORTANCE OF FINANCIAL MANAGEMENT
IMPORTANCE OF FINANCIAL MANAGEMENT: Finance is work as the lifeblood or a nerve center of a business. Finance is work for the smooth running of the business. The importance of Corporation Finance or Financial Management has been arising because of the fact of present-day business activities whose are carried by an organization or by any company.
Succesful promotion of an enterprise and plan of finance: Financial management is the successful promotion of a business because if a business has the good management of finance it can increase the goodwill of company which is a good reputation for any kind of company or any sort of business.it is also helpful in planning of all financial measurements in a business
Proper use of funds: Financial management have the next important is that it is very helpful for the proper utilization of all funds in a business which is the basic need of a business. Without the funds, business is can’t run or start.
Take financial decisions: Management of finance takes various kind of financial decisions ion an organization because its main work is to the proper use of all funds at the proper and specific place. Financial management is the main managerial department in any corporation or in a business.
Improve the profitability: Daily, monthly or annual profit of any company is more improved with the financial management because of its increases the profitability index of the company with help of various financial decisions.
Increase the wealth of investors and nation: If investors are investing their money in that company, which have the good management of finance, they can earn more and more profit with the various strategies of financial management. A nation is also promoted and can increase its wealth if the investors of a nation can get the good profit. So its helpful for both investors and nation.
Promote the corporate savings: A corporation earns more profit through the good management of its finance. So a business can do saving of money for future with the more profitability. Financial management is promoting and mobilizing individual and corporate savings.