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Importance of Finance for Non- Managers

In: Business and Management

Submitted By ekta12
Words 412
Pages 2
Q. Why is Finance important for non- finance managers?
A. Finance is important to business as without it businesses would not be able to start up or survive. In order to start a business, sources of finance are needed such as grants or loans used to buy essential items such as vehicles, premises and other equipments. It is needed for a business to maintain the running costs such as electricity and rent. It explains the importance of time, risk and returns on investment. The return on investment must always be more than the cost of capital, risk investment should be least. It is also needed in expanding a business.

Today’s Managers need to be more commercially aware more so than ever before. Even if they do not have to manage budgets or finances themselves as part of their role they still need to understand about the financials of a company, what it all means and impact of their actions on the bottom line.
If one plans the financial side of a business accurately he/she will be able to track the progress of their business in terms of profit and cash surpluses. Accurate financial documents will allow them to keep track of their cash flow and monitor how much of their loans have been paid off. They can measure their success through accurate financial planning. Financial documents will help them in keeping the records as- when company has retained enough profits to expand and improve its business.
Improving business performance requires an understanding of the components of profit and value. So as to analyze financial information, that will provide managers and business owners with effective financial skills to enable them to improve the financial performance of their business.
Finance for Non-Finance Managers is required: To have a general understanding of business finance which will enable them to improve the profits and value of their business,...

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