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Financial management is the efficient and effective management of a company’s capital funds to accomplish the objectives of the business entity. It deals in raising capital funds and allocating it through proper capital business budgeting. Budgeting that includes not only long term but also allocating short term resources like current assets. If the business is a corporation, financial management also deals with policies related to the distribution of dividends to its shareholders. Financial management services in general are economic services provided by financial consultancy groups in managing clients’ company funds, with the intention of attaining a financial goal. This includes the allocation of the financial resources, and the creation of a financial management system. When a company decides to hire the services of a financial consultancy group, the service that comes with it includes tax management services. In the business world, financial management services offered by consultancy groups have a very wide scope of responsibility. They sometimes refer to this scope as the five ‘A’s of financial management. They are Anticipation, which is the responsibility to estimate the financial needs of the company; Acquisition which is the duty to collect or to find the means to collect financial sources for the company, Allocation which is proper disbursement of finance resources to purchase fixed and current assets for the company, Appropriation which is the proper distribution of profits among the shareholders and other investors but also allocates part of that profit as company reserve and finally Assessment which is the proper control of all financial activities of the company. In any business financial management has two distinct functions namely executive and the operational routine function. The executive functions includes estimating capital requirements, determining capital structure, estimating cash flow, investment decisions, allocation of surpluses, deciding the acquisition of additional finance, negotiating for additional finance and checking every now and then the financial performance of the company. The routine function of the financial management group is the supervision of cash receipts and payments, safeguarding the cash balances of the company, of its securities and insurance policies, caring mechanical details of financing and record keeping and reporting the day to day business activities of the company. Financial management is the most important area in the field of business management. All other management sectors of a company such as production, marketing, and human resources department all depend on financial management for their resources. It must be remembered that efficient financial management is required for survival, growth and success of the business entity.
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tax management services, financial management services,
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