Financial management involves planning, organizing, and directing financial activities to harmonize individual and enterprise goals. It aims to source funds, raise profits, reduce costs and risk, and maximize long-term value. Key functions include estimating capital needs, choosing funding sources, managing cash flows, declaring dividends, and maintaining financial controls. Proper financial management is important for business success as it coordinates activities, guides decision-making, and measures performance.

1. PRINCIPLES OF
MANAGMENT
TOPIC - FINANCIAL
MANAGEMENT

2. CONTENTS
• Definition and Meaning
• Aims
• Functions
• Hierarchy
• Importance

3. DEFINITION AND MEANING
• Financial management is an area of financial decision
making, harmonizing individual motives and enterprise
goals.
• It means planning ,organizing ,controlling and directing
the financial activities.

4. AIMS
• Sources of funds
• Raise in profits
• Reduction in cost
• Reduce risk
• Long run value

5. FUNCTIONS
• Estimation of capital requirements.
• Choice of source of funds.
• Disposal of surplus
- Dividend declaration.
- Retained profits.
• Management of cash.
• Financial controls.

7. IMPORTANCE
• Success of promotion.
• Smooth running of an enterprise.
• Co-ordinates various functional activities.
• Focal point of decision making.
• Determinant of business success.
• Measure of performance.

8. DONE BY-
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