Finance Management is the science of money management of a company or organization which helps the company to accomplish its goals effectively and efficiently. Finance is the field which deals with the concepts of time, money and risk. It is mainly about the careful planning of income and expenditure to enable the company survive financially.With the growth in the Indian economy there has been an increase in the job openings in government agencies, private companies and financial organisations such as banks, insurance industry etc
Taking a commercial business as the most common organisational structure, the key objectives of financial management would be to:
- Create wealth for the business
- Generate cash, and
- Provide an adequate return on investment bearing in mind the risks that the business is taking and the resources invested
Financial management is one of the functional areas of business. Therefore, its objectives must be consistent with the overall objectives of business. The overall objective of financial management is to provide maximum return to the owners on their investment in the long- term.
This is known as wealth maximisation. Maximisation of owners’ wealth is possible when the capital invested initially increases over a period of time. Wealth maximisation means maximising the market value of investment in shares of the company.
In the existing scenario of globalization and recession each and every company is looking for financial experts who can cut off the cost and maximize their profit. With the growing Indian economic system, these professionals are in great demand in the big corporate sectors and also in small firms. Though it is a glamour less profession, a career in financial management is quite rewarding. They are the investment doctors who are responsible to take care of an individual or organisation's financial health, ensuring orderly and systematic achievement of the financial goals. Preparing financial reports, guiding investment activities and overall money management are the major duties of a Financial manager. They help the organization to achieve its enduring goals by developing financial strategies. A good finance manager is a valuable asset to the organization and what makes a good Finance Manager is not the skill to earn money but the capability of dealing with money.