Financial management

Financial management is the planning, organizing, directing, and controlling of an organization’s financial resources to meet its goals. It guides decisions about acquiring, allocating, and monitoring funds.

Financial planning: The process of estimating future financial needs and deciding how to meet them. It turns organizational goals into forecasts and funding plans.
Cash flow forecasting: The estimation of future cash receipts and payments over a defined period. Forecasts help anticipate shortages and plan the timing of finance.
Corporate finance: The study and practice of how businesses raise, invest, and distribute financial resources. It applies financial management to companies’ investment and funding decisions.
Management accounting: The production and use of financial and nonfinancial information for internal organizational decisions. It supplies decision information, while financial management directs resource choices.
Capital budgeting: The evaluation and selection of long-term investments in assets or projects. It helps determine which projects deserve scarce organizational funds.
Capital structure: The mix of debt and equity used to finance an organization’s assets. Managers choose how to fund operations and investment through this mix.
Public finance: The study of government revenue, spending, borrowing, and their economic effects. Public organizations manage funds under public budgets and accountability rules.
Financial accounting: The preparation of financial reports for external users under applicable reporting standards. External reporting records results; financial management uses information to guide action.
Working capital management: The management of short-term assets and liabilities to support ongoing operations. It addresses the funds tied up in daily operations.
Dividend policy: An organization’s approach to distributing profits to shareholders or retaining them. It allocates earnings between investor payouts and future organizational needs.

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Business administrationRelated: It guides investment, financing, and cash decisions across the business.