Financial service is part of financial system that offers diverse types of finance through a range of financial products and services as well as credit instruments. Finance is considered to be the integral part of the business and this is the thing that helps to bring a business to life. It is important to note that certain decisions within the firm cannot be made without effort from the people in financial management.
Staale Fossberg talks about the importance of finance in business
It is the presence of financial services that allows a company to enhance its economic condition and to make more profits. Staale Fossberg a financial advisor and expert say that certain business savvy techniques are there in financial services which help a business to prosper further. Staale says that the business owners define where they want the business to go, determine the objectives and then take help of the financial services in order to know how much it will cost to get there. The financial services of the company thus plays an important role when it comes to capital spending, hiring employees, raising capital, bonuses for management and marketing campaigns.
This is why financial services are important not only for the large organizations but also for the small and medium sized enterprises. It is well-known that the basis of a business is to make a profit, and therefore it only makes logic that finance would play a key role in finding ways in order to improve profitability. The financial service may include understanding the profitability of individual products and promote the winners. Staale says that by choosing the right finance service one can easily point out ways to enhance productivity in manufacturing or get cheaper sources of materials. In addition to this, it is the job of financial service professionals to ensure that the business has sufficient liquidity to pay its suppliers and employee on time. In case cash is not sufficient, the people in finance will make arrangements to use the bank line of credit of the firm.
Apart from all these financial services can also help to manage risk. It is true that managing a business is risky task and the business owner may have concerns about the direction of currency fluctuations, interest rates, changes in commodity costs etc. The financial service professionals keep a close tab on these areas and give reports to both owners and managers.
This is why Staale Fossberg believes that the role of finance in business is essential. Business owners utilize financial data every day when it comes to making decisions. They use finance to scrutinize the present and future of the project. In fact it has been proven that companies cannot operate without the proper financial services.
Thus, it can be said that businesses, irrespective of size and type, would have to depend on or deal with financial services companies. It is important to acknowledge and take benefit of the role that the financial department plays within the company.