Unit 4: Accounting, Finance, and Banking
Every day business owners make financial decisions that will impact every phase of the business operation, including such as payroll, cash flow, and projecting future growth. A thorough understanding of accounting and financial management allows business owner to find the best sources and use of funds. For example, you can derive and accurate measure the health of your business from the income statement, balance sheets, and financial ratios. We investigate financing options, how to analyze credit, and the time value of money. We also examine how banks, such as the U.S. Federal Reserve Bank, affect the ability of businesses to obtain financing.
Completing this unit should take you approximately 15 hours.
Now it’s time to take a closer look at the Balance Sheet. The balance sheet provides information about what a business owns, and what it owes.
In order to succeed in managing their finances, business owners must understand how the banking system works. Specifically, the role the Federal Reserve plays.
Let’s bring the discussion back to owning and operating a business. How to businesses get the money to operate? There are a variety of financing options ranging from owner equity financing to a myriad of debt financing options.