Finance refers to the managing money for the time when it is required. Whether it is small, medium or large organization, every enterprise requires financing for their survival. It is so important that it is considered life blood of the organisation. To achieve its objectives, every enterprise needs funds. So, in simple words managing finance means financial management.
Meaning of Financial Management
Financial management refers to that part of the management activity, which is involves planning, & controlling of firm’s financial resources. It deals with finding out various sources for raising funds for the firm. Financial management is practiced by many corporate firms and can be called Corporation Finance.
According to Guthmann and Dougall: “Business finance refers to the activity concerned with the planning, raising controlling and administrating the funds used in the business.”
According to Joseph & Massie: “Financial Management is the operational activity of a business that is responsible for obtaining and effectively utilizing the funds necessary for efficient operations.”
Financial Management is the application of the general management principles. These area includes financial decision-making, namely in the areas of investment of funds and financing various activities.