Financial management is the process of planning, organizing, directing, and controlling an organizations financial resources to achieve its goals. It involves making decisions related to the efficient procurement and utilization of financial resources. Financial management is an essential part of both economic and non-economic activities. The key areas of financial management include:

• Acquisition of assets: Decisions related to how much and what types of assets a firm needs to acquire.
• Financing: Decisions related to how a firm should raise capital to purchase assets.
• Investment: Decisions related to how a firm should maximize its shareholders wealth.

Financial management is important for organizations to plan, use projects, and future financial realizations of capital, property, and necessary stuff for maximization of the return of investments. The financial management applies the general management principles to financial resources of the organization. The financial management has a function to estimate the requirements for capital which the organization needs.

In summary, financial management is a crucial aspect of any organization, and it involves making decisions related to the efficient procurement and utilization of financial resources to achieve the organizations goals.