Financial management is a broad term encompassing a lot of things about the analysis, generation, and allocation of funds and other financial resources. Financial management uses various financial tools and strategies in order to ensure that the firm is able to maximize its profit potential while minimizing the risks associated with its assets and liabilities. It also seeks to ensure that the firm is able to meet the long-term debt and capital requirements of its borrowers. Financial management is an important aspect of any organization as it ensures that the organization’s resources are being correctly allocated, thus ensuring that the company is able to make its obligations to its creditors and other third parties. In fact, financial management also involves the process of monitoring, controlling, taxing, and investing the funds of any organization.
There are many disciplines that are related to financial management such as accounting, economics, auditing, risk management, insurance, risk analysis, management information systems, money management, law and business. All these disciplines help the financial professionals to make sound financial decisions and provide timely and accurate information to decision-makers. In addition, all these professionals should be equipped with strong communication skills and should be aware of current affairs in the global market so as to remain relevant and effective.
Finance professionals who have a four year bachelor’s degree in business administration or a similar field and who exhibit the ability to critically assess market trends are eligible for this discipline. Those who have a bachelor’s degree in accounting can look forward to a long career in the financial industry as there are a number of BBA and CAE courses that one can enroll to enhance their professional capabilities. Accounting, like other disciplines, requires the participants to undergo intensive training and to obtain specialized certifications in order to be qualified for jobs. In addition, finance majors spend part of their four year coursework in the core curriculum of a university, where they acquire solid foundation in accounting theory and practice. Finance majors can opt to participate in part time classes that offer small classes or elective courses that are not part of the core curriculum. In most cases, finance students have to opt for the second way of getting into the profession – through an online college program.
One of the main areas of focus for Finance graduates is taxation. A large number of professionals are involved in financial planning and taxation, which falls under the heading of Public Sector Management. The graduates who choose to pursue a career in financial management must have sound knowledge on taxation principles, current financial legislation, taxation practices and other related fields. The graduate also needs to possess excellent communication skills, interpersonal skills and excellent writing abilities in order to shine in the world of finance. Finance is the science of understanding the financial activities of an entity and the interplay between financial elements. Graduate studies in finance also teach students about the prevention and management of financial risks and they also learn how to implement strategies for controlling, plan for changes in financial markets, evaluate risk-based and contingency options and much more.
Another area of specialization that Finance majors focus on is investment banking. Investment banks deal with a wide range of financial activities and are considered as the middlemen for businesses and individuals. In this field, Finance majors are involved in dealing with loans, dealing with corporate cash flows, developing investment programs, commercial real estate banking, investment banking, the global financial system, coordinate fiscal and monetary policies and work on global financial and economic policy, among others. Apart from these, Finance majors are also exposed to fields such as accounting, investment banking, insurance, global economics, health care, insurance, mergers and acquisitions and securities markets.
Debt and finance are considered as the most important aspects of today’s financial system. The term itself speaks for itself. Finance graduates are often equipped with comprehensive knowledge on all the three main branches of Banking: commercial, investment and municipal. In addition, Finance majors learn how to manage, plan and control their own finances and are able to give sound investment advice. The key role they play in assisting companies and households in creating and funding their own ventures is considerable.