This paper analyses the branches of finance and financial management strategies. Finance is the management of funds and involves other elements such as savings, budgeting, lending, and forecasting. It can be categorized into personal, corporate, and government finance. There are diverse career opportunities for financial management. Therefore, individuals can earn a living from financial management. These include developing forecasts or government revenue collection and spending. Furthermore, lending out money to individuals for a mortgage. Some of the topics relating to finance are the determination of interest rates, financial statements, rates of return and risk, and return. This paper also analyses the sources of finance for small businesses.
branches of finance and financial management strategies
IMPORTANCE OF FINANCIAL MANAGEMENT STRATEGIES IN BUSINESS MANAGEMENT
Financial management strategies concern the activities of effectively panning and directing a company’s financial resources. Financial management is crucial for business development besides having accounting staff. One strategy is always ensuring the business has essential resources to meet financial obligations. Financial deficits disrupt business operations example, not paying for requirements on time hence slowing the production process. Secondly, forecasting and planning for revenues and expenses create a balance in financial management. Also, accurate financial reporting reduces the chances of errors. Businesses need to analyze the sources of finance in determining the most suitable for their venture. Starting up, companies obtain their finances from wealthy sources until they achieve breakeven and can support themselves.
importance of financial management strategies in business management
BRANCHES OF FINANCE AND THE SOURCES OF FINANCE FOR SMALL BUSINESSES
This section examines the sources of finance for small businesses. Small businesses are ventures that don’t require a lot of capital for operations. There are three branches of finance. One source is accruing its capital from savings. This is the easiest source of finance that entrepreneurs can get. Secondly, borrowing from family and friends who willingly lend their excess finances. This is informing of a loan or agreeing to take an equity stake in the company. Thirdly, short term or long term loan borrowing from banks is another source of finance. Besides, crowdfunding, borrowing a small amount of money from many people is another source. The implementation of financial management strategies is crucial for small business operations.
Read more on the sources of finance for small business at
https://efinancemanagement.com/sources-of-finance/for-small-business
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