Financial Management Importance for Financial Managers

Iqbal Shaukat^*
*Correspondence: Iqbal Shaukat, International Institute of Marketing, Pakistan, Tel: +9204237582428, Email:

Financial Management

Financial management is very important part of our life. With the financial management we can regulate the trade, Business, commerce, finance. When the Business was become modernized, the Business turned over the new leaf. Financial management become the regularized when the stock and Business took place.in USA when the wall street and new York stock exchange came in to being the financial management took place. Financial management resolved many problems of financial community.in Banks and financial institutions are taken the very important benefits by financial management. With the help of financial management we calculate the present and future value of the deposits, it help the financial manager where of the investment is stand. Financial management helps the financial managers how to make the portfolio investment, financial management guide the financial manager how to take the benefit from the various combination of investment in stock market. As far as the maximize the profit of the investment financial management provide the guidance regarding the how to use the portfolio investment combination. Portfolio investment is the integral part of the stock market. With the help of portfolio investment there is less chance to reduction in investment. Financial management provides the different techniques of portfolio investment. Risk management is the important part of financial management, with the help of financial management we can evaluate the risks between the two events, in risk management we estimate the type of risk and impact on the financial conditions of the Business. The benefit of the evaluation of risk of investment it creates the easier way to the investors to evaluate the risk. In financial management provide the techniques how to measure the financial risk. During the trade the sweeping process is very important sweep meaning that provide the way how to use the currency of other countries in the different circumstances. Budgeting is the important part of financial management. With the help of Budgeting we project our profit and other part of the Business operation. The capital budget over one years and other master budget which cover to the whole operation of the Business. Budgeting is the techniques which provide the projection of Business operation. Diversity of investment is very important in the stock market with help of financial management we made the diversity of investment according to circumstances, financial management provide the Way diversity to the investors, in various circumstances diversity of investment is very important, because of this the investors not suffer the loss which can be face through risk.

Corporate financing is the basic part of the financial management.in corporate financing get the loan from the financial institutions. Financial management provide the how to get the corporate finance from banking and how can be used for the financial development. Strategic finance is the importance part of financial management.it help enhance the Business operation through the exchange of benefits, in strategic finance we exchange the benefit which arise by the both parties. For example in strategic financing we have one store outlet you give the permission to other client that he can use his Business outlets. Hedging is the importance part of financial management, with the help of that we can cover the loss of transaction which can be suffered in future. Cash flow is the important part of financial management; with the help of financial management we can organize our Business activity. We estimate our financial activities. Material management is the important part of financial management; with the help of material management we can estimate the financial operation of Business. Dividend is the important of financial management, financial management provide the guidance how to declare the dividend to the stake holders. Financial management provides the different dividend models, which can be beneficial for the financial managers. Financial management helps the financial manager to help the profitability of Business operation and the manufacturer concern issue. Like stock in hand. Financial management is the integral part of the Business operation. Financial management helps the financial managers to take decision regarding investment and profitability.