Financial management

Definition

Financial management involves planning, organizing, directing, and controlling the financial activities such as procurement and utilization of funds of an enterprise. It aims to achieve the company's financial objectives with efficiency and effectiveness.

Related terms

Capital Budgeting: The process of planning and managing a company’s long-term investments in projects or assets.

Cash Flow Management: The practice of tracking how money comes into and goes out of a business, ensuring that it has enough cash to meet its obligations.

Return on Investment (ROI): A measure used to evaluate the efficiency or profitability of an investment relative to its cost