Financial Management in Accountancy

An area of growing importance for accountants is financial management. Financial management, as its name suggests, is about managing the sources of finance of an organisation. It may, therefore, involve managing the working capital (i.e., short-term assets and liabilities) of a company or finding the cheapest form of borrowing. There is often a separate department of a company called the financial management or treasury department. Financial management can involve aspects of financial and management accounting.