How Much Financial Management Do HR Professionals Really Need to Know?

Hello everyone,

Actually, I have a question. Can anyone explain to me how much Financial Accounting/Financial Management (related work) is involved in HR or HR work in an organization? I am not from a commerce stream and don't have a strong foundation in Financial Management, although we had Financial Management classes in the first semester. So, I am concerned as I have noticed there is a section (forum) for Financial Management in our citehr forum index.

Is everything from Financial Management needed in HR's day-to-day work? If not, can anyone tell me which topics of Financial Management are specifically required?

I am looking forward to your valuable responses.

Gentleman,

Finance is one among its many dimensions of HR. HR works to generate revenue for business, industry, or trade. The role played by HR and its contribution towards revenue generation through services valued in terms of money. Salary or wages, as remuneration capable of being expressed in terms of money, are subjects of finance. Human capital is an important component of competencies and capabilities that drive organizations. The investment in skills upgrading or competency building in human capital values of the organization is reflected in accounting principles in today's world, where it is considered an asset of the organization shown in the balance sheet.

I have tried to explain this in simple terms, hoping that it is sufficient to enhance the concepts of Human Capital and Economic Value Addition.

Regards,
Sawant