Financial management includes adoption of general management principles for financial implementation. The following may be said as the related aspects of financial management raising of funds, using of these funds profitably, planning of future activities, controlling of present implementations and future developments with the help of financial accounting, cost accounting, budgeting and statistics.
It acts as guidance where more opportunities for investment is available. Financial management is useful as a tool for allotment of resources to various projects depending on their importance and repayment capacity.