Financial management is the term used for efficient management of the funds in order to meet the aims of an organization. It is the special function which is directly related to the top management. The importance of this term is observed in capacity of staff in overall organization. This term is explained differently by the different financial management experts in this field. The term basically deals with the financial strategy of a particular organization while personal financial life management deals with the management strategy of an individual. It consists of steps how to increase the capital and how to budget a capital. It deals not only with budgeting that is long term but it also deals with short term budgeting like that of current liabilities. It is connected with dividend policies of the share holder. Planning is the part of financial management. Funds flow is moved according to some plan according to the financial management and also it deals with planning, controlling and procuring of financial resources of any firm. Financial management is operational activity that is held responsible for getting and using the fund flow effectively that are necessary for effective operational work in any organization.

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Advice in general terms can be defined as the views at personal level of what one should do in which way and when to do depending on the various types of circumstances prevalent at that particular moment. So to be exact it is a specific process of the action depending on the type of the situation with the motive to initiate the behavioural change depending on the view of the receiver. This whole process involves the involvement of the personal views of the advisor that is very much likely to be subjective in the nature. It is not at all objective neutral type of the information and also not factual in the property. The moment of the advice is mainly downwards that is in the horizontal direction as when ever there is a specific flow of the advice to the various subordinates from the boss and it is called as the downward advice. When ever the expert in the very specific field helps the management of the company in the function discharging in a very better view, then the advice is said to be flowing in the horizontal direction. There are times when an individual at the personal level and also at the work station is not able to understand or take certain decision required due to the lack of the proper guidance or the no how of the certain process or the product.

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There are certain characteristics of budgets, these are:-
A budget has to be based on the figures from the past. However it is also required to take into consideration the possibilities of future.

But it is also required to be flexible so that it can be modified if the need arises in future as a result of changing circumstances. It is possible that difficulties may be created for the management by the rigidity in budget.

The employees at different levels within the organization are required to be involved in the preparation of the budget. This helps in ensuring the willing cooperation of the employees when the management is going to implement the budget.

Budget has to be a specific statement. Therefore it should clearly mention the monitor information on quantities. It is very important that the top management of the organization is actively involved in the preparation of the budget.

Need for preparing budgets
Budgeting is considered as essential for the functions of planning and control. There are certain reasons due to which budgets are considered as being essential for the organization.

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In the process of planning, there is an establishment of business objectives and also the allocation of organizational resources in order to achieve these objectives. It is the process of deciding the future course of action that has to be taken by the organization in order to fully utilize the resources available with the organization. In this way, the process of planning can be described as a combination of finding information and decision making that is based on information inputs, outputs as well as a feedback loop.

Steps in the process of planning: there are different steps that are involved in the process of planning. These range from deciding the problem to taking the follow-up action. Therefore the steps that are involved in this process can be described as:-

1. Recognizing the need for action: the first step that is involved in the process of planning requires the awareness regarding business opportunity and also the need to take action. In this regard, the present as well as the opportunities that may arise in the future need to be discovered so that the managers can make plans for them. At the same time, the current economic trends are also required to be considered. An example can be given in this regard of a situation where the government of a country is willing to develop the rural areas as industrial centers, it will be considered by any farsighted organization that units should be established in these areas so that the facilities that may be offered by the government for this purpose can be availed by the organization.

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The managers are involved in the process of planning with a view to achieve the goals of the organization. A plan can be considered as a good plan if it is capable of helping the managers in achieving the organizational goals. Therefore, there are certain characteristics that should be a part of any good plan:

1. Clear objective: the first requirement of a good plan is that it should be based on the objectives that have been clearly defined. As mentioned above, the process of planning is used for achieving the goals of the organization. But if these goals have not been defined clearly, it may result in chaos and confusion. Therefore it is very important that the organizational objectives should be defined clearly and they should be accurate, concise and definite.

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