Why is financial management important for today mangers and leaders

Why is financial management important for today mangers and leaders?

Why is financial management important for today mangers and leaders? Decision-making must be tied to the economics of the organization and also for the department and linked to business strategy Every day, managers make this decisions that affect their company’s financial performance, whether it is scheduling operations, hiring and firing personnel, preparing a budget, approving a capital investment, or sending an invoice for payment If manager lacks the basic financial skills to allow him to understand the financial implications of his decisions. As a result, resources are wasted, poor decisions get made, and the financial performance of the organization suffers To increase productivity here we have identified five basic financial skills that anyone with management and supervisory responsibilities should have Cash Versus Accrual Accounting The Basic Financial Statements Budget Preparation Variance Analysis Financial Analysis of Capital Investments and Strategic Initiatives