How can we differentiate between cash management and financial management?

Cash Management is connected with Treasury dealings....Where as Financial Management has a broader definition

Cash management has the following purposes: controlling spending in the

aggregate, implementing the budget efficiently, minimizing of the cost of entity

borrowing, and maximizing the opportunity cost of resources (the last two purposes

yielding interest). Control of cash is a key element in macroeconomic and budget

management. However, it must be complemented by an

adequate system for managing commitment. For efficient budget implementation, it is

necessary to ensure that claims will be paid according to the contract terms and that

revenues are collected on time. It is necessary to minimize transaction costs; and to

borrow at the lowest interest rate or to generate additional cash by investing in

revenue-yielding paper. It is also necessary to avoid paying in advance and to track

accurately the dates on which payments are due.

Financial Management is a relatively new branch of accounting, that manages the finances of a particular individual, business, or organization. The main aim of the discipline is to achieve various financial objectives. It also involves the company’s financial resources for management purposes.

Its key objectives are to create or improve the financial health of the organization, either by generating cash, or by adding related resources. It should study and devise plans for implementation, in  order to provide a satisfactory return on investment. Financial management considers all factors, such as risks, of which it tries to manage, and how many resources are invested. Basically, financial management makes plans to ensure a productive cash flow. It governs and maintains the financial assets of a certain body. Apparently, the main concern is not the techniques of quantifying finances, but the assessment thereof. Financial management is often referred to as the science of money management.

The three elements of financial management are: Financial planning, Financial Control, and Financial Decision-making. Planning often deals with funding as any management should, ensuring that adequate funding is available at the right moment. Financial control, on the other hand, ensures that the individual’s assets, or company’s assets, are secure, and being utilized efficiently. Obviously, financial management deals with various financial decisions, particularly the things relating to financing, dividends, and investments.

Working Capital and Fixed assets