UNIVERSIDAD ALAS PERUANAS

FINANZAS

INTRODUCTION
Virtually every individual and every organization earns or gets money, and spends or invests
money. Finance can be defined as the art and science of money management; Deal with the
process, institutions, markets and instruments related to the transfer of money between
individuals, companies and governments. From the theoretical and practical point of view, the
experience of the financial administration, aims to identify strategic bases for the future of reform
programs in this area.
Financial management can be considered as a form of applied economics that is based to a high
degree on economic concepts. The financial manager plays a very important role in the
operations and in the success of the companies.

By: COLQUI ORTEGA, Roxana

SANCHEZ SANTIAGO, Pedro
VILLANUEVA VEGA, Sara

UNIVERSIDAD ALAS PERUANAS

FINANZAS

FINANCE
Finance is a branch of the economy and business administration that studies the exchange of
different capital goods between individuals, companies, or States, with the uncertainty and the
risk that these activities carry.1 It is dedicated to the study of obtaining Of capital for investment in
productive assets and the investment decisions of savers. It is related to transactions and to the
administration of money.2 In this context, the study is carried out on the acquisition and
management, by a company, of an individual, or of the State itself, of the funds it needs to fulfill its
objectives, and of the Criteria with which it has its assets; In other words, concerning the
acquisition and management of money, as well as other securities or money substitutes, such as
bonds, bonds, and so on. According to Bodie and Merton, finance "looks at how scarce resources
are allocated over time." Finance, therefore, deals with the conditions and the opportunity with
which capital is obtained, the uses of capital, and the returns that an investor obtains from his
investments
CLASSIFICATION OF FINANCE
There are several sources of finance, debts, obligations, gross profits, long-term loans, loan
capital, credit cards, labor risk funds, among others. These financial sources are useful in
different situations and can be classified based on time and control. A company can choose
alternative funding sources. The choice must be correct and appropriate. This is a big challenge
for corporate finance managers. This selection process must be analyzed and, understand all the
characteristics of each one, based on what the company needs. To know the sources of funding,
it is necessary to know what are the rankings of finances. Finance is classified into two branches,
public and private finance.
PRIVATE FINANCE
Basically, this type of finance is about optimizing finances on a personal level (family, personal
savings, among others). They are subject to a budget. For example, a person can finance his
vehicle at any bank. Private finance is financial planning at the individual level. It is the use of
monetary resources, personal and family, considering future events and the risks associated with
them.
Private finances include:
Savings accounts
Occupational hazards
Retirement Plans
Personal loans
Investments in the stock market
Tax management
Credit cards
PUBLIC FINANCES
These finances seek to optimize the economic objectives of a state (investment, GDP, deficit,
surplus, among others) by estimating future needs and allocating funds according to the
availability of funds.
Public finance is a branch of the economy that helps to examine the consequences of different
types of investments, taxes, and expenditures on employees of state-owned enterprises or
By: COLQUI ORTEGA, Roxana
SANCHEZ SANTIAGO, Pedro
VILLANUEVA VEGA, Sara

UNIVERSIDAD ALAS PERUANAS

FINANZAS

governments. It also analyzes the effectiveness of the procedures in the technical development of
the company. Public finances are responsible for the necessary provisions at the level of trade. A
company constantly needs capital, based on the different investments to:
Short term
Long term
Medium term
Short-term investments are used to meet a company's current needs. Long-term investments are
used for the acquisition of fixed assets of the company, for example, land, machinery, among
others. And medium-term investments include retained earnings, for example, temporary loans,
changes in the company, among others. Some branches of public finance are:
A) Income: Income is obtained by the government through taxes (taxes on income, import
duty, among others) and non-tax sources (fines and fees).
B) Public expenditure: These are the different types of expenses incurred by the
government or company during their proper functioning.
C) Public debt: When a government's public expenditure exceeds its revenues, the
government borrows to continue its correct functioning.
D) Budget: The budget is used to determine all the expenses that will have a government,
which is done annually.
E) Fiscal policy: Fiscal policy has to do with the political framework of the government,
after taking into consideration public expenditure, government revenue channels,
among others. Finance plays a fundamental role in the organization of a government
and a company. Without a proper organization, the expenses can be raised in such a
way that the public debt grows into an external debt, as is the case of many countries
in Latin America, such as Dominican Republic, Venezuela, Jamaica, among others.
FINANCE AND BUSINESS
The field of finance is broad and dynamic. It affects everything that companies do, from hiring
staff to building a factory to launching new advertising campaigns. Because there are important
financial components in almost every aspect of a business, there are many finance-oriented
careers opportunities for those who understand the basic financial principles outlined in this book.
Even if you do not imagine yourself in a finance career, you will discover that understanding a few
key financial ideas will help you become a smarter consumer and a prudent investor with your
own money
Its analysis is closely linked to Accounting as it is one of the tools used for greater control of the
Financial Operations carried out, within the framework of Capital Management and the study of
the same to achieve a development of a plan That facilitates a correct administration and the
forecast that allows to reach an Economic Growth
In addition, it tries to focus on the Origins of Money, being considered the best sources of
Monetary Income, deducting the usefulness that is given to the Obtained Capital and later the
elaboration of a schedule of Payments and Interests that correspond to the money transactions,
By: COLQUI ORTEGA, Roxana
SANCHEZ SANTIAGO, Pedro
VILLANUEVA VEGA, Sara

UNIVERSIDAD ALAS PERUANAS

FINANZAS

being able to manage If it is possible to make investments and even suggesting which is the best
option to be able to allocate those funds.
IMPORTANCE OF FINANCE IN THE COMPANY
The importance of finance in the company can be seen from three basic perspectives:

Financial management
Debt Management
Investment management

Three perspectives on which the growth of the company depends. Since, without good financial
management, proper debt management and investment in the business, there can be a process
of stagnation in business development.
Therefore, finances must be assumed as an integral part of the business structure, since they
have a direct impact on all relevant aspects of the business, but even more must be used as a
tool to enable the achievement of Objectives of the company.
In that sense, we want to discuss the importance of finances in the company, in order to highlight
aspects of relevance within the business management, and some guidelines on how these can
be implemented to achieve financial objectives Of the company.
FINANCE IN THE COMPANY
The company is a dynamic organism that moves and advances according to how it is managed.
And within the whole structure, effective money management is vital; And that is where the
importance of finances in the company lies. For without this resource it can become uphill taking
assertive decisions.
Because it allows him to have, to whom he directs, a finished overview of the reality of the
business and how to approach the different aspects of its relevance.
In this sense, finance in the company plays a dual role:

Record information
Tool for decision making.

These two functions can be seen in a tangible way in two basic elements:

Accounting
Financial analysis

These two elements are the ones that make finance fulfill its function of facilitating management
within the business structure, since they give off both the information that groups what happened
and the way in which this information becomes a point of reference To run the business.
GUIDELINES FOR USING FINANCE AS A TOOL WITHIN THE ENTERPRISE STRUCTURE
Taking this as a basis, we are interested in providing some guidelines that allow us to use finance
as a tool within the business structure, based on their importance and the value they bring to the
overall business management.

By: COLQUI ORTEGA, Roxana

SANCHEZ SANTIAGO, Pedro
VILLANUEVA VEGA, Sara

UNIVERSIDAD ALAS PERUANAS

FINANZAS

GUIDELINES 1: UPDATING INFORMATION

The first guideline to be followed for making finances in the company a tool is for the information
to be up to date.
There is a premise in quality management that states that everything that is recorded is controlled
and everything that is controlled is improved. Thus, to the extent that accurate and up-to-date
information is available, reports that summarize such information and serve as an anchor point for
decision-making can be produced.
GUIDELINE 2: CREATING SCENARIOS
The second pattern has to do with one of the most interesting aspects within the financial scheme
of a company; The creation of scenarios.
These are representations that allow us to visualize what could happen, in the near or distant
future, and how to approach that reality with adjusted strategies for its optimization. That is,
through finance the company can be transported and see the financial behavior of a particular
action and its impact within business management and more specifically, in the financial structure
of the business. So that you can see what measures to implement to optimize the available
resources.
TABLE 3: MEASUREMENT FACTOR
Finally, the finances in the company become a tool in terms of how they can be used as an
element of comparison with respect to what has been planned. In other words, they serve as a
parameter to identify whether the actions or decisions taken were as planned. And in case of not
having fulfilled, then take corrective actions that allow to establish improvements in the
management.

By: COLQUI ORTEGA, Roxana

SANCHEZ SANTIAGO, Pedro
VILLANUEVA VEGA, Sara

UNIVERSIDAD ALAS PERUANAS

FINANZAS

CONCLUSION
The finances in the company represent a value for the management of the business. Allowing
those who direct information to serve as a mirror to the realities facing the company in the day
and day; And at the same time they become a tool of relevance in decision making.

By: COLQUI ORTEGA, Roxana

SANCHEZ SANTIAGO, Pedro
VILLANUEVA VEGA, Sara