Finance is the most important aspect of any organization. Any activity of the organization, no matter how meticulously planned is dependent on the funds available with the organization. If the funds available within the organization are inadequate, the firms will rethink their choices and plan according to the available funds.
The funds crunch may leave a product inadequately marketed and thus will affect the sales of the said product. Take any decision of the organization anywhere, the funds availability will always be the foremost and most important aspect of the success of the decision making. Each and every activity has a financial implication for the organization. Every other department is therefore connected with the finance function of the organization. If not well panned, non-availability of funds can result in failure of the organization. The implication of financial management is not only attaining efficiency and getting profits but also maximizing the value of the firm. It facilitates to protect the interests of various classes of people related to the firm.