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You don’t need to study accounts or finance to have a basic knowledge of why and how things happen, and how you can understand them better. But you DO need to understand them better.
It has been said that “Finance is the art of passing money from hand to hand until it finally disappears.”
Cynical perhaps, but we all need to have at least a basic understanding of the concept and how, what we do in our job, effects the financial wellbeing of the organisation we work for.
So what is accounting and finance all about?
Accounting is concerned with the collecting, analysing and the communicating of economic information for those stakeholders who require it.
Finance is concerned with the ways in which funds for/from the business are raised and invested.
This lies at the very HEART of what a business is about (and will determine its success or failure)
Remember the words of Charles Dickens in the novel David Copperfield.
“Annual income twenty pounds, annual expenditure nineteen and six, result HAPPINESS.
Annual income twenty pounds, annual expenditure twenty pound ought and sixpence, result MISERY.
We couldn’t have said it better ourselves………………
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