There are in reality different usage of finance, in terms of the academic authority of it. So, there is what we call the personal finance, which would entail, a person’s or a family’s finances. Like their total household income and expenses, insurances, and the credit and debts. While in the business world, all divisions are to some degree interrelated and also, all of the departments are imperative to the business. Crucial in terms of aiding the management to decide if business strategies are in essence feasible and the forecasting of the profit margins, expenses and others are somehow accurate. However, if we talk about public finance, so this would include, the financial activities of the governments.
Just like finance, in wide ranging, and if we have to define it, finance is actually the administrating of the organization’s money or funds. In finance, you can see the different causes and effects of different transactions. This is also where; the company’s manager or officer in charge in an organization will be able to observe the financial ratios, the reports of it at least and of course the calculations, which more or less help him in understanding all over again the status of the company’s income statement, balance sheet and the owner’s equity. Finance, can also be used as a measurement or audit tool in various departments. In addition, this is for the reason that, this can help gauge the performance of the team and check if it also aligning with the organization’s objectives, most especially the current mission and vision.
So in a nutshell, finance reports, at least in the corporate environment, can either make or break an organization. For the reason that, it is not only the internal auditors or managers who are going to assess the financial capability of a certain company, but even other third party team as well. That is at least formed to intentionally, measure, every now and then the overall piece of the business.