Financial Management By Bhupendra Ratha, Lecturer School of Library and Information Science Devi Ahilya University, Indore b b b b b hhhh uuuu gggg mmmm aaaa iiii llll.... cccc oooo mmmm

Finance Finance is the foundation of business. No business can be started finance nor its development is possible. Finance is the foundation of business. No business can be started finance nor its development is possible. The success of business depends upon the sufficient finance and its effective management. The success of business depends upon the sufficient finance and its effective management.

Financial Management It is the part of business management in which included It is the part of business management in which included - Financial planning - Capitalization and capital structure - Product prizing - Profit policy - Budgeting and its control

Characteristics of Financial Management Continues process Continues process Less descriptive and more analytical Less descriptive and more analytical Centralized nature Centralized nature Wide scope Wide scope Helpful in decision making Helpful in decision making Measurement of performance Measurement of performance Application to all types of organizations. Application to all types of organizations.

Functions of Financial Management Planning for funds Planning for funds Allocation of resources Allocation of resources Control of funds Control of funds Allocation of income Allocation of income Coordination with other departments Coordination with other departments Routine function Routine function -Keeping record of every transaction and account safely -Keeping the cash balances properly and safely -Securities of important documents -Management of pension and welfare schemes -Providing information to top management -Obeying government rules and regulations

Important of Financial Management Basis of success Basis of success Optimum allocation and utilization of resources. Optimum allocation and utilization of resources. Measurement of performance and efficiency Measurement of performance and efficiency National important National important Useful for business managers Useful for business managers Useful for customers or users Useful for customers or users Useful for society Useful for society

Principles of Financial Management Spending institution Spending institution Growing institution Growing institution Requiring demand for money Requiring demand for money Financial allocation Financial allocation Per capita method Per capita method

Financial Management in Library  Sources of income in library Government grant Government grant Library fees Library fees Endowments and donations Endowments and donations Fines and penalties Fines and penalties Other sources Other sources  Items of expenditure in library Staff salaries Staff salaries Books and other reading material Books and other reading material Equipments Equipments Communication and correspondence Communication and correspondence General overheads General overheads