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How Does Business Financial Help in Decision-Making?

Business Financials help to Make Decisions that allows a business to keep track of all thing.So organisation it is very good to have Business Financials to Make Decisions. More: https://bit.ly/2XxzqF3

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How Does Business Financial Help in Decision-Making?

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  1. How Does Business Financial Help in Decision-Making?

  2. Introduction Business Financial allows a business to keep track of all its financial transactions. It is the process in which the company records and reports all the financial data that go in and out of its business operations. The accounting data is recorded on a series of financial statements including the balance sheet, income statement, and cash flow statement. To track all these record every organisation needs Business Financials to Make Decisions. There are a series of accounting principles companies adhere to in their financial accounting. The majority of publicly traded companies follow the generally accepted accounting principles, a common set of standards accountants follow when they complete their financial statements.

  3. Areas where financial accounting helps It provides investors with a baseline of analysis for—and comparison between—the financial health of securities-issuing corporations. It helps creditors assess the solvency, liquidity, and creditworthiness of businesses. Along with its cousin, managerial accounting, it helps businesses make decisions about how to allocate scarce resources. If you're a contractor, tradesman, or a service company, look in your shop and find that their is problem because every decision you make related to income source will fail than business financial may help you out with their techniques.

  4. Investing Decisions Investment Decision: Investment decisions related to identify the total amount of assets to be held in the company. It is one of the most important financial decisions because funds are available in limited quantity so its optimum utilization is equally become crucial in order to maximise the wealth of the organization and at that moment proper guidance and Business Coaching gives you better outcomes. Investment decisions are of two types:  Long term decision making for capital budgeting. Its is a process of making investment decisions in capital expenditure.  Short Term for working capital management working capital management policy is one which ensures higher profitability, proper liquidity.

  5. Dividend Decisions Dividend Decisions: Finally it's time to pay-out  your shareholders. Dividend decisions is the reward of shareholders for investments made by them in the share capital of the company. Dividend decisions are of following types: Cash Dividend in which company shares a portion of its net earnings with its shareholders in the form of cash. Stock Dividend in this instead of paying cash, the company will give out the share.  Stock Repurchase in which investors gets an option to sell its shares back to the company at a fixed rate.

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