Financial Management Essay Example | Topics and Well Written Essays - 250 words - 4

Financial Management - Essay Example Further, public sector enterprises are more accountable to the stakeholders, being government and public, than private sector undertakings. Financial management field is basically responsible for generating valuable information for the purpose of investing, financing and decision making and the role remains the same regardless of the type of organization. The finance managers in a public sector enterprise play many roles including: 1. Accounting and record keeping: The nature of public sector accounting is quite different from that of private sector. In order to show the users of financial statements as well as the stakeholders the position of the entity and all its assets and liabilities, the status of funds etc the finance managers are responsible to maintain appropriate, correct and timely accounting records. That includes both financial and management accounting records. This in turn ensures that the funds are properly allocated to the areas of concern, the risks and returns are highlighted and presented to the top management and the state for decision making purposes, the areas facing a decline and requiring special 2. Effective utilization and allocation of funds: The earnings or funds allocated to public sector organizations are quite restrained and in that restricted budget a public sector entity has to achieve its goals. Finance managers play an important role in the effective utilization of scarce funds to achieve as many objectives as possible within limited resources. For example if $20 million are annually allocate to a government hospital, the finance managers have to practically analyze the ways in which other costs can be reduced and more patients are treated in the allocated funds. 3. Making fund raising efforts: Proper financial management and record keeping will lead to the financial managers identifying situation wherein they need to double their