Reference no: EM133228158

Finance is the backbone of any business. From raising capital to start a business to managing sales, inventory and expenses. Financial management keep the business operating efficiently and fiscally responsible. Sound financial management allows for companies to keep growing and investing in their future. Financial management would encompass many areas. Managing payroll is one example. Payroll is often one of the biggest controllable expenses within an organization. Properly managing payroll can keep costs down. Managing inventory is also another activity of financial management. Too much inventory and your assets are literally sitting around. Too little inventory and you miss opportunities for sales. Financial managers use all kinds of tools to monitor health and performance of a business. Individual metrics are a big one. Each organization has goals that are unique to their business. They monitor those goals through metrics and KPI's. Having a balanced budget is also a tool to monitor health of a business. When I was a store manager for Walgreens, we always had metrics that we monitored on a weekly or monthly basis. These were strong indicators as to how well our individual store was performing.