Explain the importance of financial importance
Answers
Answer:
(i) Helps in coordinating By providing clear policies and procedures, it helps in coordinating various business functions.
(ii) Helps in operational activities Success or failure of every business function depends upon the financial decision. It helps in giving the framework under which operational activities are carried on effectively.
(iii) Proper utilisation of funds Finance acts as the life-blood for an organisation. For smooth functioning, it is required by every organisation. Financial planning ensures availability of funds whenever required. Thus, it helps in proper utilisation of funds.
Undoubtedly, finance is one of the most important aspects of a business. With huge funds, daily cash flow and continuous transaction, managing and monitoring all of the above turn necessary. ... To be specific, financial management helps the organization determine what to spend, where to spend and when to spend.