Main objective of business finance is the management of financial resources
Business finance is a broad term for things about the study, generation, and management of monies and other financial investments. This includes making business decisions, working capital management, long-term business financing, venture capital, sales and market analysis, as well as the provision of credit to businesses. It is often called the “business banking” element of finance. The main functions of business finance are helping companies in achieving their goals and objectives, as well as helping them to realize reasonable losses. There are many types of business finance including working capital management, capital budgeting, merchant financing, debt and recourse management, owner financing, and investment banking. Other types of business finance include owner financing, equity financing, private lending, commercial real estate loans, and government business loans.
The main objective of business finance is the management of financial resources so that they achieve the business objective. If financial resources are mismanaged, then the company will not achieve its key short and long-term goals. The ability of a manager to make sound financial decisions, therefore, is necessary for the survival and growth of any business. A financial manager must be able to provide accurate and timely financial information to support strategic planning and action. In addition, he or she must be able to make informed decisions based on available information and current conditions. All aspects of business finance must be examined, including costs, methods, outcomes, performance, lessons learned, as well as any new trends emerging.
To prepare the financial statements required by law, most companies use accounting software programs. However, even with the aid of computer software, a business firm can still benefit from the services of an accountant. An accountant can give the business owner good advice concerning all aspects of business finance, as well as assist the business firm with its financial statements and reports.