By: Ma. Teresa P. Gayon, AAIII
In our Education System, Financial Management has become, and continues to become of much increased importance. Why? Aside from the fact that it is related to the funds of the company, it guides the school officials to make optimum position of funds. Moreover, financial management makes good financial structure to minimize cost, risk, and control of money in the institution. This is indeed one aspect in educational institutions that has to be properly managed for it would affect the school’s system. However, it is not really that important to be an expert in this field for what is important is having the necessary knowledge on how financial management works in an institution.
To fully understand what finance management is all about, it is best to define first what management in education is. Management is a process of relating resources to which objectives required in organizations explicitly exist to provide education. It is a way on how an institution achieves its mission, vision, and goals.
On the other hand, if management in education is combined with finances, it results to one of the most important aspects in an educational system. It means seeing to it that the school has funds it requires to meet its goals and that such funds are used for the purposes for which they were meant. It assists the provision of finance when and where required in a manner and at a cost which provides an acceptable level of risk to the business.
It doesn’t matter if the work is not entirely dependent on one person or group, since each institution has their own system in finance. What matters is the fact that the financial system of a certain institution is regularly checked and updated, the institution will never have to face serious problems in this aspect. Like what Ms. Bernadeth S. Catubig said on her article about the same topic: The secret words are accountability and transparency. And everything will fall into place.