Need of Financial Management

Every business is deemed to be successful if it is financially better off than their competitors. The financial health of a company is determined if the income exceeds the cost. Financially feasible companies need to manage cash flows effectively so that they can keep the business running and offset the daily operating costs. The finance department is one of the chief departments of all business and organization structure. Growth of the banking, insurance and venture capital markets has spurred expansion the financial sectors in Indian markets as well as globally. This has pushed the financial management stream into an essential part of the employment.

MITSDE’s PGDM or PGDBA in finance management course is designed to take advantage of the growing financial sector. This course which is identical to the distance MBA course will prepare you to give an excellent boost to your career in the finance domain. This program takes you through the fundamental concepts of financial management. It provides you with adequate protection to operating at all levels, such as bookkeeping, finance, cash flow, budgeting, accounting, and reporting. The curriculum of this financial management course is designed by an experienced finance team and educators who have considered the latest developments and trends in this arena.

Why is financial management a critical aspect of every business is stated below?

The Importance of the Financial Management Cycle:

Finance is one of the essential aspects of any business. One cannot start a business without the capital in place; one cannot deal with clients or vendor without the finance. For expanding the business, you require a good amount of finance. In other words, you will need and have to maintain a good amount of finance if you want your business to run efficiently and for accomplishing the goal of the business.

Financial Management helps in the financial planning of the business.

Financial management helps in the financial planning of the business. Financial planning involves the decision on the objective of the business, the policies and the procedures that it has to follow and the budget for all the financial activities.. Financial planning will help the business in performing all these activities which would help in providing right financial structure.

Financial management knowledge is required for Mergers and Acquisitions.

Mergers and acquisitions are an integral part of every business. It is essential for the growth of the business. Financial management is necessary for every mergers and acquisition deal to do the financial analysis of the deal, the tax implications of the deal which will come across, for planning, coordination of the deal and efficiently executing the deal.

Financial Management would help in suitable usage of funds.   

For successfully running a business, the funds available for the business must be used smartly. The fund which is invested wisely will eventually give good returns and thus will help the working of the business more effectively.

The Knowledge of Financial management helps in increasing profitability.

The person with excellent financial knowledge will be able to identify and understand the drivers of the profitability. Through strategic insights, financial analysis of the data in front of them will give a good idea about what will help the business’s bottom line to increase considerably.

Financial management is now popularly known as business finance or corporate finance. No business or corporate can survive without proper financial management knowledge. Hence, it is one department which will never go out of demand. A person who has the financial management knowledge will always be the most sought out person as they can help the top management in making the business more successful and profitable than ever. Students who are interested in improving their financial management skills should strongly consider enrolling to the MITSDE’s PGDM or PGDBA in finance management course, which is equivalent to the distance MBA Course.