Finance

Businesses need to consider how they will fund their activities when starting up as well as during their day-to-day operations. Various costs need to be covered, such as equipment, stock and paying bills.

Business growth is important as it enables businesses to increase the scale of their operation and competitiveness. This may be done either internally (organically) or externally (inorganically).

The management of cash and cash flow is important as it can prevent a business from failing. Cash flow is the way that money moves in and out of a business and its bank accounts.

Financial terms and calculations includes revenue, costs, profits and loss, average rate of return, and break-even. These financial elements inform key decisions in every business.

Analysing financial performance in business is key to achieving success. Businesses use key financial statements to help them achieve this.