People can spend a lifetime studying the principles of finance in the business world. The financial situation of an organisation is impacted by every decision made and every action taken. You could argue that everything a business does is somehow a financial activity. For example, you lose a customer and it impacts revenue. You spend money on a marketing campaign that has a huge return and you have made a positive financial investment. If team members are not doing their job, you are effectively wasting company resources.  You could argue that everything a business does is somehow a financial activity.

Non-financial managers in an organisation can still benefit from understanding finance as they will be aware of how their decisions impact the overall financial health of the organisation. They can become more conscientious about their decision making and their operations to help the organisation’s bottom line. If you are a small business or an independent entrepreneur, understanding the basic principles of finance could mean the difference between your business surviving and thriving or failing. You need to understand how to read a budget, create a budget, and to invest your resources to get the maximum benefit that you can.