Importance of Finance for Non-Finance Professionals in 2024

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Importance of Finance is generally related with the study of investments. In layman terms it is referred as the science of money management. It is something that every individual comes across in his day to day life be it for personal purpose or business decision making purpose. Thus, Finance is a vital aspect which every individual should be aware of if he intends for some meaningful contribution to his/her organisation’s success.

It’s not just that finance is important for the specialists in accounts or certified chartered accountants who deal with spreadsheets figures of the business.

Infact, there are high chances that as a non finance professional, one has to analyse spreadsheets, facts and figures at some point of time to strategize and prepare goals according to the available data.

Why is financial knowledge necessary for non finance managers?

Professionals who are equipped with a financial background are highly capable of managing any operating scenario and are considered as good decision makers.

Moreover, in an organisation one has to interact with finance professionals as well and should be aware that how one’s actions influence their figures. The constraints regarding the decisions of the market also need to be understood and for that backing of financial knowledge is highly recommended to ensure that the decision is not putting the financial aspect of the company at stake.

In addition, the ability to interpret financial information will help to understand resource acquisition and allocation for communicating more effectively with the firm’s financial managers.

It is important for a professional to be equipped with tools regarding financial decision making as it will help them to:-

Analyze financial statements
Understand the nature of cost and ways to reduce cost
Take decision regarding price
Decide a product mix and opt for the best suited option of financing the need.

How to equip the basic financial understanding?

Various Companies such as Henry Harvin (in association with EY), KPMG, and PWC offers programs to provide the basic understanding of finance through a course which generally lasts around 3-4 days.

This program provides awareness and understanding of the ways in which finance affects the business objectives. Further it will provide valuable insight on important financial areas which are quite relevant for decision making in the business enterprise.

Participants are made familiar with the form, content and analysis of financial statements and the main accounting principles and techniques.

The program will also help to improve an organization’s performance by highlighting the importance of cost control, breakeven and variance analysis.

The Online Accounting course will be beneficial to all non finance managers/professionals and specially for

Owners of a business
Mid-level managers
Head of divisions/functions
Self-employed professionals
Managers of trust/society and corporations

Hence, finance is a crucial aspect of any organisation that one needs to be well versed with in order to maximize the profits and contribute to the organisation effectively and efficiently.

Why is finance so important?

The flow of money throughout the financial system slows down or stops as a result. All facets of the global economy depend upon an orderly process of finance. Capital markets provide the money to support business, and business provides the money to support individuals

Why is finance important in life?

Finance is always of great importance, be it in a business or in one’s everyday life. … As it is important to manage risks in business, it is equally important to manage risks in life as well. Risk is nothing but an uncertain event that might damage your assets and when it is financial risks it creates loss of finance