What we do not know and you should know about finances
Generate and spend money every day is the blink of the portfolio. Whether you’re an entrepreneur, manager or housekeeper, the dynamics of managing the flow of capital. Any business bases its proper functioning in finance and, unfortunately, it is very unlikely that we all had the opportunity to acquire this knowledge for our education, even though most of our daily life is ruled by financial transactions. Therefore, our job is to make decisions that help the direction of a company considering three financial aspects: manage, control and project.
Financial management should be a concept based on our lives and the financial statement should be something like a pacemaker. If we develop the ability to interpret the information in the financial statements, we can calculate the profits, losses, sales performance and most other indicators that will help you make the best decisions to manage the company.
Manage money involves risks. You can win but you can also lose. To search always win, we should think of financial control. Any operation of production, marketing, sales, administration and operation will be effectively and intelligently benefit if resources are managed to prevent risks, assess and monitor performance trends as they happen. Under this condition, the result of financial control is that capital will not only be managed but will be handled more efficiently and wisely.
If the “Today” financial is managed and controlled successfully, why not start thinking about the “morning”? This is where the financial projection comes in. Based on the financial information that we currently have, we can make a projection as we learn how to make sound decisions that will impact the direction of the company. For example, if we generate multiple scenarios presented by a financial projection, we can create multiple options to decide how much to invest, what to invest in and know the positive or negative impact that this investment.
Management, control and financial projection are the key factors to know for proper resource management. By mastering this knowledge, decisions will be more successful and even intuitive. It is in us avail finances as the basis for our growth and our business or employment, looking favorably impact our equity management and even in our financial prosperity. Prepare and enjoy the fruits that can give you the domain of financial tools in your business and in your daily life.