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Please be informed that pursuing guardianship is a process through the courts and can cost thousands of dollars, time and emotional energy. If you don't pursue it, the county will and then ALL CONTROL is out of both of your hands. You will be locked out of her accounts, they will commandeer all her assets and decide what facility she resides in and what kind/how much medical care she receives. After she passes you will receive an itemization for the costs of her care. Not likely to be much left over, if any. I strongly recommend she get her docs in place if she wants to have any say in her future care. If your mom has any assets beyond SS and a house, having a 1-hour consult with an elder law attorney will be money well spent.
Financial POA, again if she is unable to do so only, can sign financial documents, pay Bill's with her money, close accounts, sell car or house etc. I needed POA to file all the forms to file her LTC insurance.
Tell your mom, that she needs to sign one so that SHE decides who makes these decisions and has control of her finances if she is unable to do so. It's not giving up control, it's taking charge of those decisions. In my moms HPOA, there is a line in there that I needed a letter of competency for it to be valid.
Get POA set up before getting any official diagnosis for dementia, if shes not competent enough in the moment for the lawyer or notary to think she understands what she is signing, you cant do it. Then a guardianship may be your only option