Business Financial Management—Why Is It so Important?

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Business financial management happens to be one of the essential roles undertaken by proprietors and business managers. It helps them consider the implications that their decisions will have on the cash flow, profits, and financial viability of the business. All activities undertaken in the company will have an impact on how the company performs financially, and will need to be controlled, and evaluated by the owners.

The Business Life Cycle

people doing their workIt is common for startups to experience negative cash flows and losses during the initial days. This is where business financial management comes in. It is upon the managers to ensure that the cash on hand is enough to pay the suppliers and the company employees. This being despite the fact that the money going out during this period is likely to be more than what the business is bringing in.

The managers will, therefore, need to make financial projections based on the negative cash flows to help them determine the total amount of money that will be required to keep the business afloat until it starts to make a profit. As the company begins to mature and grow, it will need additional cash to finance its expansion.

Budgeting and planning for these financial needs will be essential. The financial managers have to decide on whether to fund their expansions by relying on internal cash, or by borrowing money from other lenders. As such, the sole purpose of financial management in a business will be to locate cheap funding sources, control the business’s capital costs, and ensure that the business balance sheet does not become too leveraged on external debt. The latter can negatively affect its credit rating.


In the course of carrying out its day-to-day operations, the company will either be providing a service or a product. This means that it will need to make a sale, collect money from the sale, and then start this process all over again. What this means is that the turnover ratio of finished goods and raw materials has to be managed, customer sales and receivables have to be done on a timely basis, and the process has to start again by acquiring new raw materials.

While all this is happening, the business will need to pay its employees, suppliers, and take care of its operating costs. These are all tasks that will require the business to have access to cash. For this to happen, the managers will need to have astute financial management skills.

Additionally, it is essential to consider the fact that although economies have long-standing histories of taking an upward trajectory, there are instances when they will undergo a sharp decline. The business owners and managers will need to plan for such times and ensure that they have enough liquidity to help them weather such times. If this does not happen, they may end-up folding their operations for lack of adequate cash.

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The Takeaway

Business financial management is an essential skill that all owners must possess. Any decision made by the owner or the manager will impact the company’s financial position in one way or another. As such, the person in charge of the company has to ensure that any decision made fits well with the company’s current and plans.


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Binary options brokers – Why should you look for the best?


One of the fastest growing types of investments in the financial world is, without a doubt, the Binary Options Trading. This is a type of contract, or option, where the person, who buys assets, is supposed to pay off a fixed, or very small amount of assets, or, in some cases, nothing at all.

This method of trading has a good number of benefits and advantages, most notable of which is the fact that it allows the investors to do very small trades for much larger returns or gains, with a minimal, or no risk at all.

Find a good broker

binary optionHowever, for all this happen, finding a good binary options broker is a must. The task of searching for such a broker is not the simplest one. If you need one for yourself, you will have to take into consideration a number of factors and criteria. Your actual choice should mostly depend on the type of trade you want to engage in. There are, basically, two types – the limited ones and the unlimited ones, which will allow you all kinds of trade.

How to find a competent and trusty broker?

The task of finding a reliable and competent binary options broker can be a bit complicated, mainly because the market is literally flooded with scammers, who are interested in nothing but their own gain, and who will stop at nothing to achieve it. These scammers usually pretend to be reliable and professional, however, in most cases, they will do nothing but charge you vast amounts of money, for, basically, nothing in return.

To avoid these, make sure to do your homework by diligently and patiently going through all kinds of brokers, investigating their background, their user reviews and their overall image and reputation. A good broker will help you earn money and predict the prices of your investments, whereas a shady one will do nothing but the opposite.

Wanted features

A large number of binary brokers have assets and platforms, that are quite similar to each other. When making your choice, make sure to check the brokers, who are known to be transparent, reliable, licensed and secure. Their trading platforms, though which the entire business will take place, must be fast, simple and user-friendly.

In case you need any assistance, their customer service needs to be readily accessible and prompt. Also, any withdrawals and deposits should offer a wide variety of choices, while at the same time being perfectly hassle-free. Not only that, but their assets should also have a long and thorough range of stocks and indices. Last, but not least, a good broker should also speak a number of languages, so as to be able to effectively work with clients of various nationalities.

What is their importance?

graphIn plain words, you cannot ensure the success of your investments, without the help of an expert binary options broker. Their assistance is necessary in order to deal with stock prices, as well as a host of commodities, which, if handled properly, usually result in profit gains within a short period of time.

Their help is also necessary because you actually do not buy a fixed asset. What you do is guess the progression of the prices. A broker can help you make the best possible guess and will provide the critical information, regarding the purchase you have eventually made, within a fixed period of time. This will, in turn, provide you with a number of transaction options, which you can use to maximize your gains.…

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Sources Of Small Business Finance

We are in a times where you must make money. Anyhow as long as it is legal means. A small business is a good source of income. Even when you have been employed, you need to have other sources of income calling a side hustle. That is an extra source of income. This will hold you up in case you get fired or anything happens to you. If you wondering how to start this small business, and don’t have source of capital, read on and get tips.

Source of capital


business financeIf you have had any saving from your job, this can be a good source of capital. You only need to identify a good venture take part of the savings and get started. You should not invest all the savings in the new business however, because, its business, can fail or prevail. When it picks continue saving and use the money for earned from business to make more orders and expand the business.

Family and friends

If you are lucky to have a family that can finance you, then good for you. You can explain to your dad, mum or siblings what you have in mind and have them support you. They can either give you the money as charity of loan you out. The good thing with family loan is that they don’t charge interest and in case the business fails they will understand and pardon you or ask you to pay in lesser installments. Friends can be another good source, your best friend can be of help during this moment. Talk to them and promise to refund the cash soonest.


moneyAlthough this is not a good idea, when you do not have any other source you can approach the bank or other financial institutions for a loan. Make sure to understand the terms of payment, including interest and consequences of default.…

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