Questions Business and Entrepreneurship

What are the functions of business finance?

Airtract

Radha Din

Be stronger than your excuses

Business finance is one of the significant parts of a business. This is the department which deals with all kinds of monetary and financial affairs of business starting from credit, investment, procurement and utilization of funds to the dealing of all sorts of operations to be performed most effectively and efficiently. Business finance is a kind of transaction done among various organizations on the condition of delivering specific services or providing products. For example, if a business organization is letting a company with some monetary support to provide them with certain products, the company is again giving funds to another small industry to make further them provide specific needs for the previous project. This way the business financial system goes on. Here in this article, let's discuss the importance of business finance.

1. Business is lame without its finance department. Irrespective of the amount, you need Finance for the initial investment of capital, for the activities, for the sales pricing and then only you can earn the profit. 

2. Business finance has the prime role in which the money is being converted to some productive goods or services  ( Working capital Management) through the minimum investment (Wealth Management) and maximum earning(Reserve creation). Here, you continuously need creditors for debts and again return the same with interest within the absolute time limit. 

3. There is no such business which does not have goals to reach, and it is the business finance which explicitly defines the path for the bottom-line success of the organization through financial requirements. 

4. Financial planning is another function of business finance. For performing any projects or activities, every business organizations need proper planning among which one of the most critical parts is budget planning. There are lots of factors which should be taken into consideration before the budget planning. You need to see the present resources, the competitor’s market, conditions of the investors, division of money, employee salaries, food revenues, etc. All these are looked at by the business financial department. 

5. While running a business, you need to find out big investors all the time and investors are always demanding for the financial forecasting reports. The business finance department is directly responsible for producing and documenting all these reports so that they can be presented systematically to impress the investors. The business finance departments also prepare Even the financial statements for the audits.


Business and Entrepreneurship Courses

Airtract FLASH SALE

Do Your Own Accounts

Lisa Newton

0 (0) New Course

How to do your own manual bookkeeping using excel spreadsheets.

1 hrs 30.27 mins 0 Students Enrolled 11 Lectures

$19

51.28 % off $39

$19

Buy Now
Airtract FLASH SALE

Start Your Own Business

Lisa Newton

0 (0) New Course

There are some downloadable items for you to fill in for your own reference - a business plan and a marketing plan. The course will take about 7 hours to complete. If you are thinking of starting y...

2 hrs 4.32 mins 0 Students Enrolled 16 Lectures

$19

57.78 % off $45

$19

Buy Now
Airtract FLASH SALE

How to be a Great Executive Researcher & Recruiter...

Gary Wilson

0 (0) New Course

This course is designed to train the student in the role of an executive search consultant. It is designed to be a basis upon which any bright individual with the right (Do It Now) attitude can be...

3 hrs 49.10 mins 0 Students Enrolled 16 Lectures

$19

90.0 % off $190

$19

Buy Now

Build Strong Foundation to Become an Entrepreneur ...

Mayur Pangrekar Verified

0 (0) New Course

Welcome! Learn directly from International life coach and trainer Mayur Pangrekar. Mayur Pangrekar has taught more than 3000 people in training programs and more than 5000 people through video c...

1 hrs 26.11 mins 2 Students Enrolled 15 Lectures

$ 0.00

Free Enroll Now
View All
Item added successfully. Go to cart for checkout.
Accept Reject