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Financial Management for Institutes

Updated: Aug 11, 2020

To start your business or to grow your business one thing that is necessary is finance. So it's very important to do financial management. Every business must have an adequate amount of finance for their smooth running of the business. To open and run an institute finance is very much important. Let us understand the financial management for institutes.


Financial management
Financial management

What is Financial Management -

It looks after the finance of the business that is funding, planning, organising, directing, controlling of finance. Objectives of financial management are -

  • Maintaining sufficient supply of funds

  • To get good return on investment

  • Efficient utilisation of money

  • Have a safe investment opportunity

Elements of financial management -


Elements of finance
Elements of finance

  1. Planning - Every institute that is going to open must do some planning on its finance like who will be the investors in the institute, who will be the shareholders, how much funding is required to open an institute. It will also include the planning of structure.

  2. Framing of the organisation’s financial policies and regulations.

  3. Financial control - It is a very important aspect of finance management. Its main objective is to assess whether an institute is meeting its requirements or not.


Now the finance for every organisation or institute is handled by the person who is expert in finance. Let's have a look at the qualities of financial manager-

  • Must have a professional qualification in finance.

  • Interpersonal skills - For accounting and finance professionals, the ability to build successful relationships with customers is critical if you want to excel. When looking at two equally qualified hires, interpersonal skills makes the difference..

  • Communication skills - The person must have good communication skills so that he or she can convince the investors to invest, and can convince the students to get enrolled in the institute.

  • Financial Reporting - A Finance person must know the reporting structure of the financial expenses, so that he can elaborate the expenditure of the institute.

  • Analytical ability - Every organisation is looking to hire employees who can implement lateral thinking, the ability to analyse scenarios, and draw suitable conclusions.

Why is Financial Management important?

Below are the reasons for importance of financial management

  • Helps institutes in financial planning

  • Assists institutes in the planning and acquisition of funds

  • Helps institutes in effectively utilising and allocating the fund

  • Assists institutes in making critical financial decisions

  • Helps in improving the profitability of institutes

  • Increases the overall value of the firms

  • Provides economic stability

  • Encourages employees to save money


Finance
Finance

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#financialmanagement #finance #financialplanning, #financialcontrol


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