| Many people would expect starting a business to | | | | finance, and managerial finance. |
| be very easy. With a product or service to sell | | | | While the ultimate goal of financial management is |
| and enough knowledge to market it properly, | | | | clear "maximizing stockholder's wealth," the path |
| many people think that they are ready to go. | | | | leading to this ultimate goal is paved with other |
| Starting a business, however, takes more than | | | | small goals. Goals like day-to-day profitability and |
| just products or services and simple knowledge. It | | | | properly managing daily finances are generally |
| takes much more if you want to make your | | | | regarded as short-term goals, and achieving these |
| business grow. | | | | goals belongs to the realm of short-term financial |
| At the very start of the business, owners or | | | | management. Aside from these, financial |
| shareholders will instantly be faced with financial | | | | management also tackles other long-term goals, |
| matters that require financial decisions. Questions | | | | including business profitability and viability. |
| such as what assets to invest in and where to | | | | Achieving the goals of financial management, both |
| get the cash needed for such investments would | | | | long term and short term, involves a lot of |
| require financial know-how. And as the business | | | | processes and activities. These usually include cash |
| venture thrives, shareholders have to manage | | | | management, financial risk management, financial |
| daily finances and make long-term financial | | | | accounting, managerial accounting, and others. |
| decisions. All of this definitely requires more than | | | | Now, these may sound like a multitude of tasks, |
| just a little knowledge in business. It requires | | | | especially for businessmen who are only managing |
| knowledge in an entirely different area - the area | | | | small businesses. With the many financial |
| of financial management. | | | | management software products available, |
| Defined, financial management is the process of | | | | however, handling all of these tasks may become |
| planning financial decisions with the ultimate goal of | | | | easier. Alternatively, businessmen may avail |
| maximizing the stockholders' wealth. In the world | | | | themselves of the services of a financial manager |
| of finance, financial management is also known by | | | | or seek the aid of companies providing financial |
| other names like corporate finance, business | | | | management services. |