The Importance of Finance
The function of finance is to manage the flow of funds. It aims to increase the profitability of a business or organization through effective planning and control. Funds are generated, used, and allocated for various operations and projects. Therefore, it is important to effectively utilize them. In addition, finance plays an important role in the acquisition of raw materials, tools, equipment, and technological expertise. The scale of finance required by a business or organization varies considerably, depending on its nature and size. However, every business or unit needs funds to finance its operations and achieve its goals. The type and source of funds required depends on several factors, including the length of time a business needs the funds. Once this period is established, the method of financing is determined. A business or organization may have several departments. However, finance is often the most important department, as its function is to…