Business Studies, asked by Fatma5781, 1 year ago

Importance of financial management in modern business organization

Answers

Answered by SAI111111
2
There is no Business without Financial Management

Businesses generate money; they pay bills for materials; they pay employees; they earn money by selling products or services. Without someone to manage the money coming in and going out, a business can’t exist. Entrepreneurship and small businesses are on the rise in today’s economy and that means that more positions for financial managers will continue to become available. With the skills you learn earning a degree in the subject you can become this crucial cog in just about any business.

 

Businesses Need Cost Analysis

If the finances of a business aren’t managed well it could be leaking money. Every company needs someone skilled in accounting and bookkeeping, not just to keep the books, but to look at the finances with a critical eye. A good financial manager can study each line item and decide where money could be saved or more should be spent. The same people who develop and sell products and services for a business don’t necessarily have the time or the knowledge to do this kind of financial work, which is why a good financial manager is so important.

 

Businesses Have to Manage Payroll

Even small businesses, with only a handful of employees need to devote time to payroll. For larger companies, paying employees can easily get out of control without good management. All businesses need someone to handle payroll. With your degree in financial management you could work for a small- or medium-sized business as a payroll manager, or you could work for a payroll company handling the payroll accounts for any number of larger businesses.

 

Smart Businesses Plan for Taxes

The tax code is more complicated than ever, and if you understand accounting you can play an important role in any business. Planning for taxes involves being able to pay quarterly estimated taxes, deciding when the best time to make big purchases is, and trying to maximize deductions. Even for a small business, taxes are complex and making sure they get paid and that money isn’t wasted is crucial for the success of a company of any size.

 

The importance of financial management for any business can’t be overstated. Without managing the money, no company can be successful. When you study at Antonelli College and earn a degree in financial management, you make yourself invaluable to a number of employers. You can earn your degree with a flexible schedule while taking care of family responsibilities and put yourself on a path to a great and stable career in a field that will always be open to skilled and talented workers.

Similar questions