Advantages of Finance
Finance can be simply described as the different investments with the inclusion of assets and liabilities of a company but these assets and liabilities normally change due to the changes that also normally occur in the business world. In this discussion, we are going to talk about the various importance of finance and how it can be of benefit to individuals and also to businesses. As a result of finance individuals and other businesses and organizations are able to pay their utility bills and this may be either monthly or weekly or even years and it also leads to the business being able to operate smoothly. The lack of finances normally leads to a lot of things being put on hold and this normally affects a number of operations of the business such as advertising and for this reason it is important for businesses and organizations to ensure that they have proper finances to enable them to be able to market their products and services so as to be able to increase their revenues and also sales.
It is normally very important for businesses and individuals to be able to have good financial records in terms of how much they are able to bring in and also how much they are spending and this is important because it will provide the individual or the business to know if it will require credit or additional money in order to continue operating or surviving. Budgeting is a very important tool when it comes to finance and this is because it provides both individual and the business with an opportunity to know the exact financial position so they will be able to know how much they need to spend and how much is within their disposal so that they avoid spending money on things that are not of importance to either the business or the individual.
When businesses normally want to expand or grow they have to put their finances into consideration because this will determine the level of expansion and also how much of growth the business is able to take. Finance does not only has benefits to the individual and the business but it also contributes to a lot when it comes to the economy of a country and this is because it leads to businesses being developed and also expanded and this means that the amount of tax that is received by the government is also increased as a result of this the government is able to have money to be able to develop the country in various aspects. In this discussion, we have been able to look at the various benefits of finance and how it has been of benefit to both individuals and organizations and also the country as a whole.