Financial management is the procedure for ensuring that companies are financially good and compliant with regulations. It includes the development of high-level approaches, planning and execution. It may help leaders determine what needs to happen fiscally for success, and ensures departments are aligned with that perspective.
Managing funds is a key part of fiscal management because it’s the lifeblood of any organization. A company should have cash readily available to meet its day-to-day expenses, which includes paying employees and purchasing raw materials for creation. It also needs to have enough cash readily available to cover buyer payments and also other receivables.
Planning and observe your spending are essential regions of financial control, which is the determining how much cash the company is going to spend on functioning costs. Typically, businesses have a master spending budget that sets out how much this company plans to shell out on capital expenses and T&E (training, wages and worker benefits).
Accounting is another important element of financial management because it reflects on the company’s income and gains. It’s also how the monetary manager allocates financial management a percentage of earnings to shareholders and reinvests all of them for expansion.
Raising money is another important element of financial managing, which involves obtaining funds for ventures or extension. It requires that loan decisions that happen to be based on information about cash flow and market movements.
Financial managers help businesses make these kinds of critical decisions by assessing risk and selecting sources of funding, such as shares, debentures, financial loans and general population deposits. They also help businesses formulate powerful investment strategies that advance results.
Dr Olayinka Jibunoh is a consultant psychiatrist based in Lagos Nigeria. She holds an MBBS from the University of Lagos, MSc in health policy from the Imperial College, London and a Fellowship with the West African College of Physicians.
She founded a health tech start-up called The Freudian Centre, which is an employee and family assistance program located at 141, Ahmadu Bello Way, Opposite Silverbird Galleria, Victoria Island, Lagos. This start-up works tirelessly to bridge the gap in access to quality mental health care for all age groups. She is an active member of the Association of Psychiatrists in Nigeria, the American Psychiatric Association and The International Society of Substance Use Prevention and Treatment Professionals. She can be reached on 0700FREUDIAN and olayinka@freudiancentre.com Follow @freudian_centre on instagram and face book.
