And why is it so important?

Financial management is a methodology that uses established principles, concepts, processes and procedures to maximize the value of a business to its owners or stockholders while protecting the interests of its lenders and employees.

Businesses cannot afford to avoid vigilant oversight and rigorous assessment of their financial performance, trends, and potential risks

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• Performance includes understanding both hits and misses in the firm's operations (i.e. what is working well and what is not working well) to help determine corrective actions that may be needed, as well as taking advantage of opportunities that only such analysis can yield

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• Trend analysis encompasses assessment of historic data (actual results) and forecasts (planned future results).  No firm can confidently go forward without understanding there it has been.  Forecasts need to be both realistic (reasonably achievable) and forward-thinking (i.e. appropriately adjusted for organic growth and opportunities that have a greater than 50% chance of being realized)

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• Risk assessment is integral to good financial management and includes identifying and mitigating any of the numerous potential risks that could jeopardize the health and sustainability of the business

Operating in the dark or with false assumptions of your financial position is stressful and dangerous. and should a serious problem arise, there may not be sufficient time to react and implement corrective actions--thus resulting in a financial loss.