Administration - Definition & Meaning
What is Administration?
The process of administering, especially the management of a government, organization or large institution is called administration.
In terms of finance, administration is process of managing the monetary aspects of the business. In this, it is very important to monitor the incoming and outgoing funds of the business. The basic necessity of any organization is to manage the funds to ensure the completion of requirements within time to maintain sustainability.
Financial Administration refers to the set of activities related to generate, regulate and distribute money to the various branches of an office or an organization to enable it carrying out its objectives.
Financial Administration is not about the sums, it’s also about the understanding of the structure and accountability requirements of successfully running the business.
Financial Tasks:
• Receipting
• Invoicing
• Expenditures and Wages
• Business Activity Statement
• Funding and Contracts
• Banking and Cash
• Budget and Cash Flow
The frequency of financial administration can be daily, weekly, fortnightly, monthly, quarterly and annually, depending upon the financial tasks.
Aspects of Financial Administration:
• Collection, preservation and distribution of funds
• To make coordination between revenues and expenditure
• Management of Credit operations
• Control of Financial Affairs
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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