Financial Management

Nazmah Auliani Dewi 221015200247

What is Financial
Management ?

Financial management is the efficient

and effective management of (funds)
in such a manner as to accomplish the
objectives of the organization..

It is the planning, organizing , controlling

and monitoring of the financial recourses of
an organization
Financial management process

Managing scarce resources

Managing risks

Managing strategically

Managing by objectives
Who is responsible for Financial management The diagram
the demonstrates the day-to-day financial management
tasks delegated down through the line management
structure. At the same time, the accountability process
comes back up through the structure as people report back
on progress
 Principles of Financial Management

01 02 03 04
Viability
Transparency Accountability To be financial viable, an
Consistency All stakeholders have the right organization spending must be
Organization must be
to know how finance and other kept in balance with the money
Consistent use of open about their work ,
support are being used to meet coming in, both at the
providing information
Financial polices and objectives. operational and the strategic
about activities and plans
procedures are for (Accountability is the moral and levels.
efficient operation to all stakeholders. This
legal duty placed on an Viability is a measure
includes preparing
individual, group or organization organization use to determine
accurate , complete and
to explain how funds, equipment their
timely financial report..
or authority given has been financial continuity and security

05 06 07
Stewardship used).

Viability Financial stewardship involves Integrity

To be financial viable, an
organization spending must be
kept in balance with the money
coming in, both at the
operational and the strategic
levels.
Viability is a measure organization
use to determine their
financial continuity and security
taking good care of the financial
resources we are entrusted with The integrity of any
to make sure they are used for organization financial
the purpose intended . In records and reports are
practice, organization achieve dependent on accuracy
good stewardship through and completeness of the
strategic planning, assessing its financial records
financial risks and setting up
appropriate system and control