Finance is the Back bone of any business that make it run. It's essential for any entrepreneur or manager to undertand the Language of Finance.
These documents can tell everything about the company or business in financial terms like financial stability, profit, loss, debt all the assets and liabilities that a company has, and provide a snapshot of your company’s financial health.
1. Balance Sheet 2. Income Statement 3. Cash flow Statement
The basic purpose of Budget is maintain a criteria of expenses. Forecasting is prediction made on past records for the future events in financial terms.
Woring Capital: The fund require to fulfill the day to day requirement of a business. Debt Equity: Debt and equity includes the capital structure how the funds are obtained and the approproate ratio should be maintained.
Risk Management is a very crucial in any business activity.
Insurance Company ensures that they're protecting us fromcdamages. Diversification When a business put It's funds in several different projects to minimize the risk
These are the Ratios that gave us a compared view of 2 actual values. Looking at these ratio we can interpret the condition of the business and other terms like profitability.
1. Profitablity Ratio 2. Liquidity Ratio 3. Debt Ratio
Here are covered the very basics terms of Business Finance but You need to stay connected to the field of Finance to have deep inside knowledge. Still this Quick GUide of Business Finance Basic Makes you Zero to Hero
Here is the detailed description for the Business FInance basics that will make you able to understand the financial terms. Click to read the full article.