Financial Management skill & Its Benefit

by Tara Z. Growth Hacker @ Talentedge

Money is the most important requirement for making money; without money, a business would only be an idea on paper. If businesses do not manage their financial resources and activities effectively and efficiently, the business will not be profitable, sustainable or viable in the long-run. Before diving into the benefits of financial management for marketing and advertising, let us understand the role and functions of financial management.

What does financial management do?

Decision-making and exercising control over all financial resources and activities, budgets, etc. of the organization.
Planning financial activities and resources by using available internal and external data.
Estimation of capital requirement, determination of the capital structure and composition and choosing the funding source.
Efficient allocation and utilization of financial resources
Maintenance of adequate working capital and cash flow at all times to meet the operational expenses and emergencies of the business.
Preparation of financial reports which serve as the database for forecasting and planning financial activities in the present and the future.
Financial risk forecasting to ensure the business is well-equipped to meet potential risks and contingencies.

Considering the how central and critical the finance function is, there is a steady and ever-increasing demand for finance professionals with the expertise, skills and knowledge to effectively and efficiently handle this function. This is the reason why finance is a lucrative career path and is increasingly preferred by professionals from across the spectrum. If you too wish to enter the lucrative finance field or want to become a valuable resource to your current organization, enroll yourself to the financial analyst course, and financial risk management course. After opting these finance certification you can start career in can as financial analysts, financial risk manager, financial managers and personal financial advisors.

Benefits of financial management for marketing and advertising industry

It is a widely known fact that marketing and advertising are the creative spaces within the business that work relentlessly to build strong brands and make the brand voice heard amidst the clutter and noise in the market. They work towards making the brand as well as its products and services visible to the target audience, increasing its reach and conversions. They focus on building greater brand awareness and loyalty, creating 360-degree customer engagement and so on. To this end, they engage in planning and strategy. But creativity can, at times, take very expensive and time-consuming forms without much heed for the result. This is where financial management can help advertisers and marketers.

Since financial management seeks answers in numbers and quantifiable terms, marketers and advertisers will learn to think about the ROI and if their time and money costs on campaigns are worth it. This way client resources/business resources can be saved from getting wasted. It helps marketers and advertisers say ‘NO’ and re-think their strategies to make the campaigns cost-effective.

Financial management also helps marketers and advertisers to stay within an allocated budget through efficient utilization of resources and implementation of cost-saving measures. It enables them to budget their activities optimally, forecast expenses, manage their cash flow and most importantly, to be organized and work methodically.

If you are marketer or advertiser, you will benefit greatly by learning financial management through one of the best finance courses.