Financial management is a new branch of accounting which manages the finances related to business and organizations. The main aim of accounting is to achieve the financial objectives by considering the financial resources of the company that will help to resolve the issues related to team members and management. The financial health of the company can be improved by increasing the use of cash or by adding the number of resources which are required for managing the financial. The financial management of the organization can be done effectively with the use of strategies and return on investment can be generated with the use of accounting and financial management in the organization. the number of risks related to finance of the organization can be mitigated by considering the number of issues related to financial management.
The productive cash flows can be generated by the use of financial management strategies in the organization. There are a number of strategies that can be used for quantification of finances related to organization. There are three main elements of financial management such as financial control, financial decision making and financial planning. Planning also help to manage the issues related to finances in the organization and it is the main responsibility of the higher authority to manage or formulate the plans which are quite helpful for managing the issues related finances in the organization. the planning of finances can be done to ensure that adequate funding is available in the organization for managing the resources in the organization. the financial control of an organization also helps to ensure that individual assets are secure and utilized effectively in the organization. The financial management also deal with the decision related to dividends, financing along with the investments.
Accounting is termed as recording, summarizing and classifying the resources and assets of organization in terms of transactions, money and events which area part of financial character and interpreting the number of results thereof. Accounting is defined as the language of business which can be used to report the financial data related to the business entities. Financial accounting is of two types financial accounting and management accounting. The accounting report of an organization can be focused on various individuals working in the organization and the management accounting provides the information related to auditors, employees, managers and owners.
With the use of accounting information, the number of decisions can be framed or taken that will foster the business growth in the company. Accounting is more concerned about the financial information and help to keep track of assets and finances of resources by planning, effective decision making and controlling. The number of business applications can be managed by the use of finances and accounting in the organization. Accounting is a comprehensive process that can be used for measuring, identifying, processing and recording the number of financial transactions related to entities of the organization. accounting also refers to analyzing the information related to internal users such as employees, management and external users such as regulators, investors and tax officials or oversight agencies.
Accounting is termed as process of reporting the financial information by the implementation of International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principle (GAAP). The standards related to accounting can be set by the use of Financial Reporting Council, Financial Accounting Standards Board (FASB) and the Securities and Exchange Commission. Financial accounting is defined as preparation of reporting related to financial information and financial statements in concern of government agencies, creditors, investors, bank analysts etc. managerial accounting is termed as financial information related to internal users like employees and management for the policy-making for the number of operations of business.
Cost accounting is defined as the portion of management accounting related to cost analysis. cost accounting makes a collaborative effort related to operations, products and functions. The process of accumulating the cost of activity also refers to the process of cost accounting. The proper use of economic resources can be done by the use of financial reporting. The effectiveness of financial decision can define the success of the organization on the basis of investment, financing options, and dividends. The utilization of fixed assets can be done efficiently by the use of accounting principles.