Importance of Financial Mangement or managerial finance

Managerial finance is important in all business including banks and other financial institutions, as industrial and retail firms. Its is also important government operations, schools, hospitals and highway departments.

Managerial finance is important for people in marketing, accounting, production, personnel and others areas to understand finance in order to do a good job their own fields.Marketing people , for example, must understand how marketing decisions affects and are affected by funds availability, by inventory levels, by excess plant capacity, and so on. Similarly, accounts must understand how accounting data are used in corporate planning and are viewed by investors.

Now days the important of managerial finance increasing day by day. Failure and deteriorating of many corporations increase the importance of the managerial finance. For example,the failure of Neon Air Limited,deteriorating of performance of the Nepal Bank Limited. etc. Most Of the corporations fail due to the improper financial management. Such type of management arises due to the lack of adequate know edge in financial decision making process.

The importance of managerial finance or financial management can be below:

1. To make investment decision
2. To make capital structure
3. To make dividend decision
4. To make working capital decision
5. To archive certain goal