Finance is the lifeblood of business. It includes much more than the activities related to raising funds and earning profits. Finance management is one of the most crucial factors for the growth of the business. It is concerned with the process of planning, directing, implementing and controlling varied financial activities within an organisation. Different principles of management are applied in a firm to manage the finances.
Importance of Financial Management in an organisation
All the goals and objectives of a business are directly or indirectly related to finance. It is regular inflow of cash and profits that ensures smooth functioning of a business. There are several reasons that indicate that financial management is important for an organisation. These are:
Proper use of funds
The efficiency to conduct business operations is improved with proper allocation and utilization of the funds which is ensured by finance management. When the funds are utilized properly in an organisation, it leads to a reduction in the capital cost along with an increment in the firm’s value.
Boost savings
Unless an organisation earns huge profits, it cannot start saving. Effective financial management in an organisation ensures that there are ample profits and it facilitates the organisation to mobilize for savings.
Financial planning
In an organisation, financial planning is pivotal. Under the process, the financial requirement of a firm is determined and funds are allocated for different tasks. Effective financial management ensures effectual financial planning.
Increases profitability
An organisation can succeed only if it earns huge profits, which is possible only through the effective utilization of funds. Financial management along with different financial devices such as ratio analysis or cost volume profit analysis facilitates in enhancing the firm’s profitability.
A career in Financial Management
Financial management is essential for every firm, whether small or big. That is why companies are in a lookout for efficient finance managers who can take care of the finances within a firm. So, there is a bright scope in the field. In order to seize job opportunities, candidates need to gain requisite knowledge and acumen in the field. Here, MIT School of Distance Education’s (MIT-SDE) courses in Finance Management serves as boon for the aspirants. MIT-SDE offers 18-months Post Graduate Diploma in Management (PGDM) and 24-months Post Graduate Diploma in Business Administration (PGDBA) in Finance Management to upgrade the skills of candidates. The courses equip the candidates with necessary skills to edge the competition. After the completion of the course, individuals can undertake various job positions including:
Finance Managers
The professionals can join reputed firms and MNCs and maintain their finances on a daily basis. They can also plan strategies that enhance the profitability of the business.
Cash Managers
Cash managers take care of the inflow of cash and utilize it effectively to fulfill the needs of the company.
Risk and Insurance Managers
The task of risk & insurance managers is to analyse different risks liable to arise due to any fault in the business operations. They then plan strategies to tackle the risks. The insurance budget of the company is also managed by them.
Branch Managers
Individuals can even become branch managers of financial organizations. From hiring personnel, customer assistance, loan approvals to the establishment of a rapport with customers, a branch manager takes care of everything.
International Finance Managers
International finance managers get a hold over the financial & accounting activities including banking transactions of different MNC’s and international organisations.