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.

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 supporting 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

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

Public sector

The financial administration is concerned with developing financial studies and research, especially for public sector institutions. In order to analyze the financial and economic conditions.

Private sector

Financial management is concerned with developing financial studies and research, especially for private sector institutions, and is owned by businessmen and owners of capital, such as commercial and service companies, and others.

Individual Sector

Financial management is concerned with following up on the income and expenses of individuals, and measuring the extent of the success of savings when making a purchase decision.

Financial Decisions

Make the appropriate investment decision.
Develop a specific time plan for the implementation of the required 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.