Business and finance are respective areas that go well together when it comes to companies and profits. Business is the area of goods or services which are provided in exchange for money. Finance is the complementary aspect of business; it is the area under which the funding for the business comes.
The funding is the time in which a business acquires money for the purchasing of materials or a facility; these are important in order to keep the business functioning. There is financing that occurs throughout a business’ duration. During this time, the company can be expanded or a new product material might be purchased at a higher or lower cost; this either increases or decreases the overall cost of the items that are made.
When it comes to business finance, an important area that also comes with it is law. Business finance and law are important together because money needs to be accounted for with every transaction that the company does. From the first loan taken out to the purchasing of the materials to every sales transaction, a record must be kept. Records are kept to ensure that the business is utilizing the money properly and is utilizing the funding by a lender under the conditions under which the agreement was written.
However, business finance and law is also important in regards to taxes. Different taxes are required on particular items that are sold. Taxes are also given to the company themselves to pay. By keeping an eye on the way the money is utilized and the utilization of taxes, companies can assure lenders, the Government, and various other inquiring bodies that business and finance matters are being conducted within the law.