BENEFITS OF FINANCIAL

MANAGEMENT
ADVANTAGES AND DISADVANTAGES OF FINANCIAL
MANAGEMENT
 ADVANTAGES OF FINANCIAL MANAGEMENT

• 1. Better Decision Making

• Financial management facilitates better decision making. It collects and
provides all financial information regarding the organization. Easy
availability and accessibility of all information help managers in taking
decisions efficiently on the bases of facts and figures.

• 2. Transparency Of Information
• Financial management leads to the transparency of all information
in business. It records all information systematically and made it
available to all business users. Better transparency helps in developing
proper understanding within and outside the organization and avoids
any confusion or errors.
• 3. Enhances Managerial Efficiency
• Financial management is responsible for maintaining proper financial
discipline in an organization. It ensures that all financial resources are
efficiently utilized and there is no wastage. Financial managers
supervise the activities of all employees and work at deriving better
results out of them.

• 4. Determines Adequate Capital

• Estimation of an adequate amount of capital that a business requires
to start and continue its activities is an important task. Financial
management estimates the right amount of funds required by the
business so that it can be acquired timely.
 CONCLUSION

•  financial management practices is a field which deals with financial

decisions including
• short goals
• long goals
• of the organization and ensures that there is a high return on the
invested capital without necessarily taking excess finance risk.