Financial management involves planning, sourcing, using, and controlling funds to achieve organizational objectives. It has three key elements: financial planning/budgeting, financial control, and financial decision-making regarding investments and financing. Proper financial management ensures accountability, viability, and effective use of scarce resources through practices like establishing budgets, internal controls, financial reporting, and auditing. The overall goals are to maximize benefits to stakeholders and ensure the long-term sustainability of the organization.