Importance of Finance
Finance can be simply described as the different investments with the inclusion of assets and liabilities of a company but these assets and liabilities normally change due to the changes that also normally occur in the business world. In this talk, we’re going to have the opportunity to discuss the various benefits of finance and how it can be beneficial to both individuals and organizations and businesses. One of the most important things about finance is the fact that individuals are able to pay their bills which include utility bills and businesses are able to ensure that there is smooth running of the business as a result of finance. In order for businesses and organizations to be able to market and advertise their products and services they require good financing so that they may be able to exercise such kind of operations and this quite crucial because good marketing and advertising normally leads to increased revenues and also sales which end up increasing the profits of the business.
It is normally very important for businesses and individuals to be able to have good financial records in terms of how much they are able to bring in and also how much they are spending and this is important because it will provide the individual or the business to know if it will require credit or additional money in order to continue operating or surviving. Budgeting is one of the tools that normally go hand-in-hand with finances and it is quite crucial because it normally provides an individual and the business with ability to know how much is within their spending capacity so that they do not exceed their limit and end up spending money on things that are not required by the business or that the individual.
The finances of a business or organization will determine the amount of growth of expansion that the business or organization needs and it is important to ensure that your finances are in order so that you may be able to have a positive growth. Finance does not only has benefits to the individual and the business but it also contributes to a lot when it comes to the economy of a country and this is because it leads to businesses being developed and also expanded and this means that the amount of tax that is received by the government is also increased as a result of this the government is able to have money to be able to develop the country in various aspects. In this chapter, we have had the opportunity to look at the various ways in which finance is quite beneficial to individuals and also businesses not forgetting the government of the country.