---
title: Financial Management
slug: workflow-en/financial-management
description: Learn how IT Financial Management (ITFM) helps organizations optimize IT service costs by balancing cost, quality, and risk. Discover metric-based cost optimization strategies based on standard financial and accounting principles, tailored specifically fo
createdAt: 2021-10-27T20:18:12.000Z
---

## Presentation

According to ITIL, the goal of **Financial Management** for IT Services (**ITFM**) is to **optimize the cost of IT Services while taking into account quality and risk factors**. The analysis balances cost against quality and risk to create intelligent, metric-based cost optimization strategies.

Balancing is required since cost-cutting may not be the best strategy to deliver optimum consumer outputs.

**ITFM **is a **discipline based on standard financial and accounting principles** but addresses specific principles that are applicable to IT services, such as fixed asset management, capital management, audit, and depreciation.