Every business works with limited resources — financial management is simply the process of planning and monitoring the use of a company’s financial resources. The goal of implementing sound financial practices is to use resources effectively to achieve the organization’s objectives.
Financial management activities can include cash flow management, profitability analysis, and risk management.
This guide will explain these fundamental concepts behind sound financial business management and how they apply to your company. Here’s a quick look at what we’ll cover:
- What financial management means for your business
- Why financial management is essential in 2021
- 6 fundamental concepts for sound management
- Challenges of implementing these concepts
- How to get started with financial management
Let’s begin with how financial management applies to your business.