Finance

Finance is no simple math, financing for a business starts with the acknowledgment that a person starting a business will need financial support. There are different ways of collecting the money such as 1) Personal Capital, how much the owner will give, 2) Friend and Family, or 3) Bank loans, the most common ones. After deciding to apply for a loan, the next step is to prepare a loan request proposal, where specifications of the financial statements, purpose of the loan, amount, time of payback, and supporting documents among other things are explained under the loan request proposal. Certain loans apply to certain small businesses; some bank loans may not apply to all businesses. These loans can be applied to a business’s financial support when purchasing a business, equipment, paying debts, etc.

Accounting and finance go hand-on-hand, because finance is the analysis of a business’s money, while accounting is the actual numbers. Accounting is very important because based on its calculations, an entrepreneur makes business decisions. Bookkeeping is one of the ‘tabs’ which means having accurate records of a business, financial statements, spreadsheets with the expenses, cash flow, income, etc. over some time these records will show the company’s assets, liabilities, equity, revenue, expenses, and most importantly if there is a profit or loss. Accounting and Finance are the strong base pillars that a company must have well structured.