Managing finance in business is amongst the few vital things to take into account before starting out business.
The pattern of financing, the quantum of investment required and the policies are also the other factors that explain the – business finance definition.
In a nutshell, business finance is all about utilizing the available funds effectively and efficiently to achieve a set of business objectives.
BASIC FUNCTIONS OF MANAGEMENT
Planning is where it all begins, a primary function involving some chalking out for the future.
Here, a business concern decides in advance an appropriate course of action to achieve the pre-determined objectives of business. It deals with – when to do, what to do & how to do.
Hence, it could be said that determining the course of actions is what planning means. Planning is necessary to make sure there is proper utilization of human and non-human resources.
And also important to reduce risks, uncertainties, and confusions.
This process involves bringing together of human, physical and financial resources and aims at developing a business relationship with them to achieve the goals of an organization.
Organizing a business is crucial for its functioning, and it requires capital, tools, personnel, and the raw material.
The process involves: identifying the activities > classifying the events > assigning the duties > creating a sense of responsibility.
Staffing involves managing the structure of the organization.
In the recent years, staffing has more important due to the advancement in technology, scale of business, etc.
The purpose of staffing is to put the right guy on the job.
Staffing also involves recruitment, placement, training, remuneration, etc.
It is one of the essential core functions of business management.
In this part, the organizational methods are put to work efficiently to achieve its goals.
It is very commonly known as the “life-spark” of the organization since it sets things in motion, since planning, staffing, organization are just the preparations.
It deals with guiding, influencing, supervising and motivation the personnel to achieve the objectives.
The primary purpose of controlling is to make sure everything functions just as planned.
It is the process to ensure the checking of the progress being achieved in making the objects.
To accomplish the objectives just as desired, controlling is essential.
For the purpose of theory, although the functions of management are separated, they still manage to overlap in nature, which means they are not separable as each process mix into one another and thus explains the – business finance definition.