Corporate finance is an indispensable thing for every business, the core of business success. If you are still wondering, let’s learn what corporate finance is today with hosodoanhnhan.
What is Corporate Finance?
Corporate finance is one of the important tools in every company’s financial apparatus.
Corporate finance uses a company’s financial information to help manage the company’s cash flow and engage in jobs that generate profits for the company.
Corporate finance involves reading financial statements and connecting the dots between profit and loss accounts. This is reflected in the balance sheet and cash flow.
If reports indicate a funding gap, corporate finance provides strategic planning tools to close that gap.
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– The relationship between the company and the state, which is expressed by the financing of the state for the operation of the company (for public companies) and the company fulfilling financial obligations towards the State such as the payment of taxes and royalties etc…
– Business relationships with other economic entities such as payment relationships in capital borrowing and lending, capital investment, purchase or sale of assets, supplies, goods and products related.
– Relations within the company, expressed in the payment of wages and salaries by the company and the action of bonuses and fines with the company’s employees; payment relationship between company departments, providing after-tax profits of the company; the distribution of dividends to shareholders, the creation of social funds…
What is corporate finance used for?
Read the financial statements
Based on the financial statements, the finance manager of the company will read and report the profits and losses of the company, thus letting the owner of the company know that the company is currently earning more money than the objective or not or is at a loss.
Not only that, the balance sheet has the ability to show how a business is profiting and losing. It also provides specific reports on the company’s cash flow over a given period.
Corporate Finance gives you comprehensive information about your company’s cash flow. For example, if your business is profitable but has no working capital, business finance can help you see clearly where your expenses are going.
Financial strategic planning
From the financial statements, financial planning allows the company to have a financial basis to implement the projects and sales plans. Corporate finance is a special tool for doing these things.
Business finance can help you estimate how many items you should sell so that you can offset the initial capital outlay when launching those items. Strategic planning is a part of business finance, strategic planning can help you see whether your business can be successful or not for short term financial purposes.
Manage financial options for your business
When your business has cash flow difficulties, Corporate Finance will help the CFO understand this and immediately provide financial options to the CFO of the business.
With the calculation of the amount to be paid interest and principal, when coupled with the current financial statements to obtain the loan strategy and how to repay the debt.
With financial options and strategic strategies, your business will be able to obtain stable and more long-term money. However, to do these things, you will still need to master the skills needed to make and use business financial tools.
Hopefully with this article, Verco has shared to help you better understand the company’s finances and its important tasks. To have these skills in corporate financial management, Verco today still offers many corporate finance courses for a wide range of subjects.
Loc Nguyen – General (Reference: smartrain, quantri, …)
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