What is financial management?
As you may have noticed from the previous task, financial management has diverse implications for companies and individuals.
Financial management is a method for planning and organising the activities of funds. For companies, it is aimed at the effective procurement and utilisation of funds. For individuals, it is meant to manage earnings in order to have good financial health and stability in future.
From a general point of view, the management of finances is nothing but the planning of expenditures and incomes to ensure financial stability. Financial stability implies the availability of sufficient money when it’s required. It is a key concern for many entities.
Entities may include:
-
Companies – sourcing and investment of funds
-
Individuals – planning for future expenditures and income
-
Government – utilising public money in the most efficient manner
-
Non-profit organisations – planning of funds required for activities
In the next step, we’ll look at financial management in the context of the construction industry.
An Introduction to Financial Management in Construction
An Introduction to Financial Management in Construction
Reach your personal and professional goals
Unlock access to hundreds of expert online courses and degrees from top universities and educators to gain accredited qualifications and professional CV-building certificates.
Join over 18 million learners to launch, switch or build upon your career, all at your own pace, across a wide range of topic areas.
