This document defines financial management and outlines its key elements and objectives. Financial management involves planning, organizing, directing, and controlling funds used in a business. It is concerned with judiciously using and selecting sources of capital to help a business achieve its goals. The core objectives of financial management are profit maximization, maintaining liquidity, and wealth maximization. Additionally, it aims to ensure fair shareholder returns, build reserves, and maximize operational efficiency. As part of financial management, a hotel finance manager is responsible for accounting, financial reporting, budgeting, managing cash flows and banking relationships, and training other staff.

1. Financial activities/resources/management
of money
• Planning
• Organizing
• Directing
• Controlling
Financial management-meaning

2. Definitions
• “Financial management is the activity
concerned with planning, raising, controlling
and administering of funds used in the
business.” – Guthman and Dougal.
• “Financial management is that area of
business management devoted to a judicious
use of capital and a careful selection of the
source of capital in order to enable a
spending unit to move in the direction of
reaching the goals.” – J.F. Brandley.

3. Scope/ Elements
1. Investment decisions
2. Financial decisions
3. Dividend decision

4. Objectives
• 1. Objectives of Financial Management
• Basic Objectives
• Other Objectives
• Basic Objectives :
• Profit Maximization
• Maintenance of liquid assets
• Wealth Maximization
• 2 Other Objectives
• Ensuring a fair return to shareholders
• Building up reserves for growth and expansion
• Ensuring maximum operational efficiency by efficient
and effective utilization of finances.
• Ensuring financial discipline in the organization

5. Importance
• Helps business(hotel) in financial planning.
• Assists in the planning and acquisition of funds for
hotel.
• Helps in effectively utilizing and allocating the funds
received or acquired.
• Assists in making critical financial decisions.
• Helps in improving the profitability of organizations;
• Increases the overall value of the firms or
organizations.
• Provides economic stability.
• Encourages employees to save money, which helps
them in personal financial planning.

6. • Role of a finanace manager in a hotel
As an Accounting Manager he / she should provide the
Owners, General Manager, and other management with
accurate, timely, and relevant financial data. Additionally
responsible for managing the audit function in hotel to
deliver outstanding guest service and financial profitability.
• FINANCE MANAGER DUTIES AND RESPONSIBILITIES:
• Best experience
• Represents the finance department
• Manage all phases
• Calculate and distribute wages and salaries.
• Prepare regular reports
• Prepare financial statements
• Verify recorded transactions
• Providing direction to the night audit team

7. • Reviewing all ledger details
• Resolve problems if any.
• Review guest balance reports
• Ensure correct taxation
• Ensure that all statutory details (PAN, TAX NO,
Company Registration no. Etc.)
• Bills A/R accounts daily
• Follows up
• Review the Accounts Receivable
• Follow up 30 days.
• Check customers credit ratings
• Enters invoices into accounts payable
• Forecasting cash payments
• Adequate cash flows
• Maintain banking relationships

8. • Follow up 30 days.
• Check customers credit ratings
• Enters invoices into accounts payable
• Forecasting cash payments
• Adequate cash flows
• Maintain banking relationships
• Monitors property inventories
• financial reports
• Working with executives
• training to hotel operational team
• system of policies and procedures