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Good evening class,

The purpose of finance in business is simply to manage the business's finances. Finances is a business is a key role to that success of that organization. Things such as planning and budgets, cash flow, loans, profit margins, risk are all things that a business has to do to control its financial health.

The kinds of activities that are included with financial management are overseeing cash flow, keeping accurate accountability of purchases, profits in some sort of accounting or bookkeeping log. This may also include conducting proper risk management.

The tools that are often used in financial management are expense tracking, payroll management, budgeting, inventory tracking. Another tool that is used is ratios. Ratios analyze four main aspects which are profits, liquidity, financial leverage and efficiency. I personally in my current job have not used any of these tools. When I had my own small business I tracked these things such as inventory. Profit and loss margins but that's as complex as it got. Finance in a business is very important and a lot does go into it.