Accounting keeps track of company's activities whereas finance is the core of every business organisation. Finance is also essential in evaluating the risks that an organisation has with every decision it makes. Finance is an essential part of every business. The company must be aware of its finances and keep track of their spending or expenditure. Finance is also defined as money management. It also takes care of investments and keeps a track of profit and loss statement of a company. All the assets acquired and expenses of a company are officially registered through financial methods. Check MBA Finance Course to know more in gaining the required financial knowledge for a business.
The uses of finance are the following -
- Strategic Planning and Budgeting - Finance is essential for budgeting the capital of a company. The allocation of funds in to respective fields is known as budgeting. Based on the surplus amount, money which is left after spending on expenses, the company can plan its future moves.
- Funding - Finance helps an organisation in deciding if it should raise money through loan or equity. Various factors influence this decision of an organisation. Some companies might be suitable to give out equity and raise money while the rest are more suitable towards taking a loan.
- Cash Flow - A small to medium business always tries to keep track of expenses. The finance department keeps track of the money that has been spent and the remaining amount of capital. The finance manager must ensure that the company has enough liquidity to pay its suppliers and employees on time.
- Profit and Expense Planning - The general purpose of a business is to make profit in order to sustain. Finance department helps in increasing the profitability of a company. This also includes finding out how profitable each product is separately and how well the company is doing as a whole. Business owners can look at their financial statements to review if any abnormal expense has occurred and try to avoid it.
- Risk Management - Every business has a certain amount of risk associated with it. The finance department has to ensure that the business considers the risks associated with each decision that follows. Financial management has to be done by the finance department in terms of investments and current expenses.
The three core branches of every organisation are Marketing, Finance and HR. Finance has a lot of job opportunities for aspirants looking to choose a career in this field. GetMyUni is a website that provides information to aspirants looking for information regarding colleges. You can find various colleges providing MBA Finance course on this website.
A person who has completed MBA Finance course has opportunities to work in a bank or financial consulting agencies. Various universities in India offer a lot of choices in MBA programs and MBA Finance course. Finishing an MBA course in finance gives any capable person a lot of job opportunities. The aspirants who are interested in getting information regarding admissions in colleges for MBA finance courses can visit GetmyUni.
Author: Sai Raja M
Sai Raja M is a college student who aspires to be an entrepreneur. His primary goal is to help other students choose a more meaningful and relevant career in their life.