The Importance Of Financial Planning And Financial Management

There are six functions that you have to do efficiently. Many things have to be considered when running an organization; you have to take care of your staff, produce a quality product, and have impeccable customer service. Each step is just as important as the other, if you don’t do one function properly you may affect other functions in your company.

The first of the six key functions of business is financial records and management. It is first important to first define financial planning and financial management. Financial planning is the planning for the future of a business to ensure there will be positive cash flow in the years to come. Financial management is when a business monitors its cash flow to ensure the continuation of the business’s operations is as effective and efficient as possible.

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large (Hair & Lamb, 2013). It is important to understand how to get the product to the customer, and how to communicate to your customers information about your company. With that being said, first you must come up with a marketing concept which is the idea that the social and economic justification for an organization’s existence is the satisfaction of customer wants and needs while meeting organizational objectives (Hair & Lamb, 2013). Marketing includes transportation, social media, pricing points, and many other things.

The next key function is office management. The planning, controlling, and organizing of office work, this is many times delegated to an administrative manager. These responsibilities include things like payroll, human resources, and ensuring that your staff has a safe and productive environment to work in. This is often a process that is overlooked but it is just as key as any of the other