ABSTRACT
This chapter discusses some of the practical aspects of financial management which apply to private sector as well as public sector organizations. Financial management is the process of acquiring and using finance. Successful financial management suggests that the organization's finance has been sourced and invested in such a way that the organization's objectives are achieved. Financial objectives are those that can be measured in monetary terms. In profit-seeking organizations the principal stakeholder is the shareholder and the key financial goal will be to increase the shareholder's wealth. The net present value method is the preferred method for the financial appraisal of projects. Risk management is a theme in many aspects of public financial management. Inventory management is all about finding the right balance between holding sufficient inventory to achieve operational requirements with the minimum of risk, and minimizing the costs of holding that inventory.
