---
title: Financial
slug: itsm-en/financial
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
docTags: 
createdAt: 2021-10-27T20:18:12.000Z
---

## Presentation

According to ITIL, the goal of <font color="#3b9f0f">**Financial Management**</font> for IT Services (**ITFM**) is to <font color="#3b9f0f">**optimize the cost of IT Services while taking into account quality and risk factors**</font>. 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.

****<font color="#3b9f0f">**ITFM** </font>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.