Financial Management Rules

Financial Management Rules

Financial Management Rules

Financial Management is a set of rules that study the best possible ways to obtain a financial profit and provide the ability to finance all the tasks that take place within the facility.

The financial department seeks to support the production and marketing of goods or services that are provided through the company or the institution to which it is affiliated. It is being worked on, and the more financial decisions that are taken contribute to reaching correct results, the more this indicates the success of the financial management in the task it is doing.

Certified Financial Manager – CFM (USA)

The role of financial management

Financial management thought has an important role in helping the growth and advancement of companies, based on the following points:

  • Its important role is to follow the competition, between companies working in one field.
  • Its important role is to follow the competition, between companies working in one field.
  • keeping pace with the rise in economic inflation; As a result of the economic crisis that emerged in the twentieth century.
  • Looking for ways to organize cash flow.
  • Contribute to support companies to avoid bankruptcy.
  • It interacts with the merger policy between companies, in order to provide a collaborative institutional environment, which contributes to the unification of financial departments.
  • It studies the financial budget of the institution and the business sector to which it belongs.
  • Linking legal legislation with financial decisions.

Financial Management Sectors

Financial management contributes to achieving success and financial development in a number of sectors, namely:

Public sector
The financial administration, which is concerned with developing financial studies and research, especially for public sector institutions, is owned by the state government, such as ministries, their affiliated directorates, and others. In order to analyze the financial and economic conditions.

Private sector
Financial management, which is concerned with developing financial studies and research, especially for private sector institutions, is owned by businessmen and owners of capital, such as commercial and service companies, and others. It seeks to assess the extent to which it has achieved success, under the conditions of competition with other companies. Individual Sector

Individual Sector
Financial management, which is concerned with following up the income and expenses of individuals, and measuring the extent of the success of savings, when making a purchase decision, with the identification of appropriate ways to study personal expenses, and the percentage of the financial return upon receipt of the value of income, which is usually associated with the monthly salary, in exchange for working on a job.

Financial Decisions
For the success of any project, or business of which money is a part, care must be taken to take a set of decisions, including:

  • Make the appropriate investment decision.
  • Develop a specific time plan for the implementation of the required work.
  • Estimating the appropriate amounts of money to be spent on administrative work.
  • Distribution of profits to shareholders at the end of the financial year.
  • Preparing an economic feasibility study, in order to finance the projects that will be worked on.