Understand the Role of Finance in Business: unit 4 by anna hutchins https://padlet.com/abhutchins2/n4m7ezntydo1 en-us 2017-05-10 14:06:37 UTC 2017-05-10 14:07:09 UTC hello@padlet.com abhutchins2 https://padlet.com/abhutchins2/n4m7ezntydo1/wish/171014981 Understanding the role of Finance in Business:
Financial planning
Reduces financial uncertainties
Increases control of financial activities
Provides a ‘map of finances’ for business
Profit = Revenue > Expenses
Business budgets


  1. Prepare a list of income and expense items.

  2. Gather accurate information from business records.

  3. Create the budget.

  4. Clearly communicate the budget to key employees in order to make sound business decisions.


Financial records and statements

Asset records
Depreciation records
Inventory records
-Records of accounts
-Cash records
-Payroll records
-Tax records


Financial performance ratios
-Current ratio
-Debt to equity ratio
-Return on equity ratio
-Net income ratio
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