What Is Finance?

Money makes the world go round. Most people would agree and support this statement. Money does seem to make things better and kinder. Money, as with other material properties, vanishes in an instant when not managed properly. There are various narratives of lottery winners who became prime examples of one day millionaires. What these people need is a deeper grasp of financial literacy. Financial Management, especially in business, as well as the documents and materials that it involves,  is not as intimidating as others project it to be. Proper financial management is necessary on three levels: personal, corporate, and public (government).

Types of Financial Documents

Some people shy away from piles of business documents with more numbers than words. It is a natural instinct to avoid things that we do not understand. But, the opposite course of action must be taken. Circumstances that bring in unknown variables is an avenue for further learning. Here are the key financial documents, according to the Securities and Exchange Commission:

Balance Sheets: This document contains a detailed list of the corporate assets and liabilities, as well as shareholder's equity or net worth. The details on this sheet are used to calculate the company's return on investment.

Income Statements: As the name suggests, this document focuses on the details about the acquired revenue of the entity in a specific time frame. Focusing on profit, it also means considering the expenses done to bring in the income.

Cashflow Statements: These financial statements contains a summary of the monetary transactions of the company with external dealings. It determines if the company generated cash within a specific period.

Statement of Shareholder’s Equity: The shareholder's equity is the worth of the company, given that all the debts and liabilities are paid off. In sum, it is the net worth of the institution.

Effectively Manage Finances With Our Samples

Mismanagement of money or finances on a personal, corporate, or government level is because of inaccurate record keeping. We have a variety of professionally written finance and budget documents that are ready to use for different situations. These files are also compatible with different file formats and are fully-customizable. Level-up your money management skills by downloading these documents now!