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National financial management may include financial operations in a home country for a government or a company. This term is also used in reference to the control of family finances. The intended meaning is usually clear from the context of the term. Courses and degrees in both senses of the term are available to people such as accountants, political academics, and members of the financial sector.
In the sense of dealing with financial matters for a national company or government, national financial management focuses on matters within national borders. This may include topics such as budgeting, determining sources of income, and financial compliance. For corporations, domestic financial management maintains the viability of the business in its home country and creates a strong foundation for operations. A company with poor internal finances may have problems abroad as a result of its financial disorganization.
At the government level, internal financial management involves defining and implementing fiscal policy to promote economic well-being. Government authorities may maintain a portfolio of assets that can be used to finance government obligations. This may include funding individual agencies, paying legislators, and other activities. To balance spending, national financial management includes budget and revenue decisions, such as fiscal policies that help nations meet their financial obligations by raising adequate funds.
A key aspect of national financial management for governments and corporations is accurate record keeping and review. It is important to know how to make financial projections, as they help with planning. In addition, the analysis can provide information on domestic sectors with overspending or overfinancing, which can be very important for decision-making. A corporation may find, for example, that sourcing parts in-house is prohibitively expensive, in which case alternative sourcing options may need to be considered. This also creates liability as entities must be able to show how and why they used the funds.
Family finances can also be known as household financial management, and people can take courses on this topic if they want to manage their family budget more effectively. This includes many of the same procedures that governments and businesses use, including revenue forecasting, budgeting, and prioritization to ensure expenses are covered. While household expenses are less complex than managing the domestic operations of a large company, they may share characteristics such as excessive spending in certain departments or not accurately predicting shortfalls in income. There are a variety of tools available to help you keep your finances in check, including accounting software to keep your books in balance and track expenses over time.