Definition of Financial Management:
Financial management is that part of management concerned with the raising of finance necessary for the business and with the implementation of financial policies and practices.
Finance is the lifeblood of the business. The plans of a businessman would remain in a dream unless adequate money is available for their actual realization. Cash is required when the business is formed and it is equally necessary for running the business.
Financial Management is one of the most critical functional areas of Management since the success of a business is highly dependent on the proper utilization of financial resources. Financial management is concerned with managerial activities i.e. raising and proper utilization of funds for economic purposes. It deals with planning, organizing, directing, and controlling the financial activities of the business: Financing and its proper uses are extremely necessary for maintaining the steady flow of business activities. Hence, financial management is concerned with the easy raising of funds from various sources with favorable terms and conditions, proper utilization of the collected funds in a planned manner, and also the other managerial function i.e., organizing, directing, and controlling the financial activities