Financial management is more than procurement of funds. Procurement is a complicated subject that encompasses a wide range of interconnected operations along with relationship between purchasing and other departments. In addition to the management of the company’s ongoing supplier relationships, relationship between procurement and finance department.

Among its responsibilities are the selection, appraisal, and development of formal contractual agreements. In simple words, financial management in procurement refers to the source-to-pay procedure is also known as the source-to-settle process. According to him, “Financial Management deals with procurement of funds and their effective utilization in the business.” Financial Management in Procurement DefinitionĪccording to the Financial Management Institute, financial management in procurement means management of all procedures involved with the effective acquisition and deployment of both short and long-term financial resources, as they pertain to the purchase of products and services. Out of all the definitions most popular and widely accepted definition of financial management is delivered by S.C. The term financial management also has lots of definitions. In views of Howard and Upton, “Financial management should be considered as an application of general managerial principles to the area of financial decision-making.” According to Weston and Brigham, “Financial management is province of financial decision-making, harmonizing individual motives and enterprise goals”.įinancial management is the core of entire finance study. According to him “Financial Management is concerned with the managerial decisions that results in the acquisition and financing of short and long term credits for the organizations.” In words of Solomon, “Financial management aims to effectively use the capital funds which also happens to be a significant economic resource.” Financial management definition by different author – Phillippatus has given a more amplified meaning of financial management. 7 Financial Management Basics For Beginners.

3 Basic Concept of Financial Management.2 Financial Management in Procurement Definition.

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