helps you in taking correct financial decision

1. FINANCIAL
MANAGEMENT
PREPARED BY
PRIYANKA KUSHWAHA
MBA 1st
ROORKEE INSTITUTE OF TECHNOLOGY

2. FUNCTIONAL AREA OF
FINANCIAL MANAGEMENT
Financial Management and Economic
Financial Management and Mathematic
Financial Management and Marketing
Financial Management and Accounting
Financial Management and Production Management
Financial Management and Human Resource

3. FINANCIAL MANAGEMENT AND
ECONOMIC
Financial management and certain economic
concept like micro-economics and macro-
economics are closely related , as these
concepts are applied with the financial
management approaches. Important
economics equations like money value
discount factor, economic order quantity etc.
are frequently used in financial management.

4. FINANCIAL MANAGEMENT
AND MATHEMATIC
A number of mathematical and statistical
tools and techniques are applied in the field
of financial management under the modern
approach. Some of the econometrics
frequently used in the field of financial
management are economic order quantity,
discount factor, time value of money , cost of
capital, dividend theories etc.

5. FINANCIAL MANAGEMENT AND
MARKETING
Marketing of the goods produced is as
important as the production of the goods
itself. It involves application of innovative
ideas and modern approach in tune with the
changing times and the strategies adopted by
the competitors. For all these , the
marketing department needs funds, which
again is assessed and allocated by the finance
department.

6. FINANCIAL MANAGEMENT
AND ACCOUNTING
The relationship between the accounting and
financial management is closed one , as most of
the accounting record pertain to financial
information. Both the faculties , i.e. financial
management and accounting were considered as
one single discipline during the bygone era, which
subsequently evolved as management accounting .
Knowledge of management accountancy
facilitated I taking important decisions.

7. FINANCIAL MANAGEMENT AND
PRODUCTION MANAGEMENT
The operational part of a manufacturing unit is the
production management , which is the most vital
area of business as it facilitates multiplication of
money into profit . The creation of profit for a
business organisation begin with the production
requires finance for the purchase of machineries ,
tools raw materials etc. Funds are also required for
the payment of wages and operating expenses.

8. FINANCIAL MANAGEMENT
AND HUMAN RESOURCE
It is the responsibility of human resource
department to procure workforce to all functional
department including the financial department.
Finance department and HRD need to work in a
coordinated manner to assess the manpower
requirement for each department , after which the
finance department may allocate necessary funds to
HRD as wages , salaries , bonds , commission and
other monetary benefits to HRD.

9. THANK YOU