use and importance of financial management

Financial management functions are mainly viewed from two approaches as traditional function or role and the new role or functions. Raise of funds is taken as a traditional role or function whereas raise and allocation of funds are taken as a new role of financial management or finance managers. The first approach confines the functions of financial management is the procurement of funds only and ignores the utilization of funds whereas, the second approach not only focuses on the procurement of funds but effective utilization of funds as well.