Actually, what is the function of financial management in business? When you think about funds, financial management is at the heart of the business.
It is not clear where the money ran. A newly created business is challenging to wither before it is developed because the financial management function is not working. Therefore, to avoid this, understand the following basic things
Bookkeeping is the process of recording financial activities starting from the sale and opening. This information is then written in the form of a written report. It consists of profits, losses and also finance.
Bookkeeping is important because from here you can get funds whether they have met the targets yet. Besides this, it is also necessary to know the areas that need to be controlled.
Funding around which funds you get the wheels continue to run. Most businesses use credit cards or business loans. For small and medium businesses, there are currently many banks that provide capital loans to speed up fast-growing businesses.
Thinking about business financing is important. You can meet basic needs. However, management must also be careful. If you use a credit card for business, make payments on time to avoid penalties.
3. Cash Flow
The financial management function further helps to save the business for cash flow movements. This cash flow Monitoring cash flow can help you to find alternatives and make some emergency decisions.
4. Budget / Determine Budget
The budget is important and must be done carefully because it is concerned with money out. It is recommended that you prioritize what you need most first so you don’t have to spend money. This also relates to the debate, whether by issuing a budget of a few percent
In practice, the financial management function can work well if your financial manager, or yourself as a business owner, understand its function.