People sometimes worry that financial management will be a very complicated, difficult and intellectual process. But in fact the best financial systems are very simple and easy to follow. The more complicated the system, the greater the chance that something will go wrong or that someone will make a mistake.
Remember, the legal responsibility for financial management lies with every member of your management committee and not just the treasurer. Your management committee and members must know who is responsible for the financial tasks in the organisation and these should be clearly defined in your trustees' written roles and responsibilities.
F.M definition:- 1) Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise.
2).The management of the finances of a business / organisation in order to achieve financial objectives
3).Financial management is that managerial activity which is concerned with the planning and controlling of the firm’s financial resources.
4).The planning, directing, monitoring, organizing, and controlling of the monetary resources of an organization.
1}Nature and scope of F.M:- The nature of financial management is the relationship with economics and accounting, its functions and its scope. Financial management is the way and the means of making money, the application of the functions of planning and control to the finance function.
The modern approach to financial management is to find out how much money is required by the company in question, and then to source