What is financial management?
To understand financial management, one must first know what it is. Financial management is the managerial process of budgeting, forecasting, planning, and controlling investment portfolios and activities to achieve an organization’s desired financial goals. It’s about how a company invests its money. With this knowledge, one can see why it is so important for managers to be adequately trained in finance.
The global economy has been rapidly changing due to advancements in technology and trade that have impacted every profession, including finance. For example, the United States economy has been trading with China at a growing rate. Exports from the US have been increasing, and so has our national debt. The country has been experiencing periods of prosperity that have allowed companies to flourish and become more global. This is all thanks to financial managers who are knowledgeable about the economy and trade policies.
With the increased globalization of markets, the term “corporations” is not just a formality but is an accepted principle. In today’s world, corporations encompass private enterprises, small and middle-sized companies, multinational corporations, and all public organizations.
Corporations also play an essential role in societies, serving as the primary component of most industries, economies, and political regimes. The corporations employed in the industries and economies of different nations are mainly diverse; however, they all operate under certain similar principles.
The role of a finance manager in financial management
The term “financial manager” is a professional responsible for managing corporations’ financial affairs. Financial managers have various responsibilities, including preparing financial reports and analyzing economic performance. They are responsible for keeping corporations afloat despite the global recession’s financial constraints and far-reaching effects.
The financial manager plays a vital role in corporations and various industries. Financial managers do not work for only one corporation but serve several industries across several geographic locations.
The financial manager is involved in many activities, including managing the employees, implementing new operational procedures, and ensuring that new products and services are launched at the right time.
The experience and knowledge of the financial manager are essential in virtually all fields. This is why the financial manager is high on the list of vital positions. However, it is still difficult for a young man or woman to break into the workforce and make his mark as a financial manager.