1. Maximize Profit: One of the primary goals of financial management is to maximize profit. Financial managers aim to create financial strategies that can generate higher revenue while minimizing expenses.
2. Efficient Utilization of Resources: Another goal of financial management is to ensure that the resources of an organization are efficiently utilized. The financial manager's task is to ensure that the company's resources are allocated in a manner that maximizes its benefits.
3. Maintain Adequate Liquidity: Financial managers are also responsible for ensuring that the organization has enough cash flow to maintain its daily operations. Maintaining adequate liquidity is important to ensure that the organization can meet its financial obligations when they become due.
4. Ensure Long-term Survival: A major objective of financial management is to ensure the long-term survival of the organization. Financial managers create strategies that can sustain the organization in the long term, such as investing in research and development, expanding product lines, and increasing market share.
5. Maintain Good Credit Rating: Finally, financial management also aims to maintain the organization's credit rating. Financial managers ensure that the company pays its debts on time, thereby building the organization's credit history and reputation. This enables the company to obtain financing at favorable rates and to attract potential investors.