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Financial Management

Financial Management is a vital process in the ITIL® framework. The economic delivery of the services in any organization requires prudency and transparency in finances.   Income and expenditure should always be accountable. Financial Management can help with that.

In Financial Management, all costs related to service delivery are determined.  Some of these costs may be direct, and some may be indirect.  However, they should all be taken into consideration. This value helps to determine the cost of the service to the client and establish a link between the quality and the cost of the service. The overall analysis of the cost of services assists the organization and clients establish standards and can lead to an improvement in the IT services.

Financial Management helps directly with the budgeting for the organization. The main objective of this process is to quantify the services in financial terms so when an analysis is done, all costs are clear and justifiable.  This also allows the company and clients to properly forecast and decide the costs of future services.  One of the main components of service delivery is to determine costs and establish if clients are getting value for their money. It is also important to verify that the appropriate cost is being charged for the service.

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About this author:

Angel Prusinowski

Angel is a leading ITIL® instructor at Ashford Global IT.

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