Let's look at; The Role of Finance in a Business
Strategic Planning and Budgeting
After defining where you want the business to go, determining the objectives, ask your financial people how much it will cost to get there.
Strategic Planning and Budgeting
After defining where you want the business to go, determining the objectives, ask your financial people how much it will cost to get there.
These plans form the basis for hiring employees, capital spending, raising capital, marketing campaigns and bonuses for management.
Equity or Loan?
Is it better to raise more equity capital from investors or take out loans from lenders?
Equity or Loan?
Is it better to raise more equity capital from investors or take out loans from lenders?
Financial analysis gives the answer to this question because it let's you know how much you need, much you have and how much you can get.
Cash Flow Management
It's the job of financial managers to make sure the business has enough liquidity to pay its suppliers &employee on time
Cash Flow Management
It's the job of financial managers to make sure the business has enough liquidity to pay its suppliers &employee on time
If cash is getting tight, the people in finance will make arrangements to use the firm's bank line of credit.
Financial analysis will spot a situation where the company have excess cash sitting idle in a bank account and will find investments that produce a better return.
Financial analysis will spot a situation where the company have excess cash sitting idle in a bank account and will find investments that produce a better return.
Profit Planning and Cost Controls
The basis of a business is to make a profit.
Finance plays a major role in finding ways to improve profitability.
It include activities like determining the profitability of individual products, and products that are non profitable too etc
The basis of a business is to make a profit.
Finance plays a major role in finding ways to improve profitability.
It include activities like determining the profitability of individual products, and products that are non profitable too etc
Finance could point out ways to improve productivity in manufacturing or find cheaper sources of materials.
Managing Unavoidable Risks
Financial management analyzes the risks of international markets, checks the credit standing of customers, goes through the terms of loans from lenders and provides an assessment of the perils in these areas.
Financial management analyzes the risks of international markets, checks the credit standing of customers, goes through the terms of loans from lenders and provides an assessment of the perils in these areas.
Nothing is ever for certain, and finance helps put the hazards in perspective.
The role of finance in business is indispensable because fancial data is needed every day, when making decisions.
The role of finance in business is indispensable because fancial data is needed every day, when making decisions.
Finance is used to analyze the present and project the future.
Companies cannot operate without the benefits of financial analysis. Hence, there's need to invest in having a good finance structure. Your business needs it.
#woleoluyemi
Companies cannot operate without the benefits of financial analysis. Hence, there's need to invest in having a good finance structure. Your business needs it.
#woleoluyemi
