Cash is part of financial resources.
A resource is a means , of any kind, that allows us to obtain something that is desired or needed. Money , for example, is an essential resource to buy a house. Finance , on the other hand, refers to assets, flows and the circulation of money.
This allows us to affirm that financial resources are assets that have some degree of liquidity. Cash, credits, deposits in financial institutions, currencies and holdings of stocks and bonds are part of financial resources.
Financial resources of a company
Companies generate these resources from various activities. The sale of products and services, the issuance of shares , capitalization rounds, requested loans and subsidies are some of the sources of financial resources.
If a company has $5,000 in cash and a savings account with $3,000, its financial resources reach $8,000. Of course, this is a simplified example, since the financial reality of a company is much more complex.
The importance of cash flow
Those in charge of managing financial resources must analyze and plan the correct flow of funds; In this way, problems due to lack of resources to carry out productive activities or pay obligations will be avoided. If the company did not have sufficient resources, it could become a debtor and have to pay additional interest.
Budgets and balance sheets , therefore, are essential to know the state of financial resources, since they reflect the entry and exit of money from the organization's coffers.
Financial resources can be obtained in different ways.
Management of a company's financial resources
It is correct to say that, today, the implementation of management systems (known as ERP, from the English acronym Enterprise Resource Planning ) has achieved great popularity in the business market. The reason, probably, is that they help sustain efficient administration and lead to the maximization of benefits , through the reduction of costs ; In addition, they offer the necessary support for companies to meet the objectives they set.
ERPs serve to integrate all aspects of a company's operation: financial management , commercial management, production management, input and output management, warehouse control, etc. Thanks to its help, a lot of time is saved and the chances of errors are minimized, since information does not have to be transferred between different applications.
Economic indicators
Economic indicators are information that investors can analyze to understand the current state and direction of the economy . Using this resource, together with the study of currencies, for example, opens the doors to better decisions regarding purchases and sales. The correct interpretation of economic figures allows:
* obtain the best possible return with respect to an investment made;
* study the operation of companies and their products;
* detect the right moment to acquire, invest or enter the market;
* understand the development of the economy;
* analyze and judge various economic policies.
It is important to take action against potential financial risks , which refer to adverse events and their consequences for the economy, such as an unexpected loss and the impact on the stability of a company. These emergency situations, it should be noted, are never welcomed by investors, and a stock crash always seems to be just around the corner from any misstep.
To distribute the risk it is possible to make different types of investments; For example, you can invest in the money market, stable value, bonds and stocks.