Finance in Business

Finance

Understanding finance is critical to ensuring the sustainability of your business

Finance is the art and science of managing money

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What is Finance?

Understanding Finance ​is critical to ensuring the sustainability of your business.

Why is Finance so important?

Key Financial Terms

6 Key Finance Terms you have to know

1. Revenue is the money a company recieves from its customers for the value it delivers to them

2. Expenses are the cost the company incurs in doing business

3. Profit (sometimes called earnings) is the money the company keeps from the revenue recieved after paying all of its expenses

Key Financial Terms (Cont.)

6 Key Finance Terms you have to know

4. Assets are the items and resources owned by the company that determine its value

5. Liabilities are debt and other financial obligations that a company has that count against its value

Key Financial Terms (Cont.)

6 Key Finance Terms you have to know

6. Capital is money that comes into your business as an ivestment or a loan or money that your company uses to invest or to loan money to others. It's not the same as revenue since it's not earned. When capital refers to an investment, it adds to the value of its company. This changes the ownership structre as capital is invested in exchange for ownership in the company

4 Key Aspects

There are 4 Key aspects of finance that an entrepreneur needs to understand to be competent

​​Accounting

​​Day to Day Finance Management

​​Budgeting & Modeling

The Balance Sheet