A Guide to Getting a Graduate Degree in Finance and Accounting2 min read
Finance is the method of channeling monetary funds from borrowers and lenders to entities which require it. Typically, borrowers and lenders both have money available which can make interest or dividends when placed to good use. The process works like this: lender provides credit to the borrower with the aim of repayment of a loan taken by a borrower at some point of time in the future. The borrower uses the money to buy a product that will earn him/her money. When a borrower is finished with his/her purchases, lender collects the money for repayment from him/her.
Many think that finance pertains to financial decisions made by a manager or an executive. Finance can involve the buying and selling of stocks, currencies, bonds, insurance etc. A wide range of finance products are available to deal with various financial aspects. However, it should be kept in mind that no business finance is ever a one-size-fits-all solution.
Business owners are required to plan and manage their finance to ensure long term viability. Finance management involves overall financial planning including cash flow, working capital requirements, investment objectives, debt management, and asset allocation. In addition to planning, it is important to execute the plans in a timely manner to avoid legal issues as well as avoid any potential financial risks. Capital structure, working capital management, venture capital, and financing growth are some other aspects of corporate finance.
The major objective of corporate finance is to provide sustainable growth in the company’s assets and profits. This objective can be achieved through efficient management of financial activities and timely delivery of financial results. The process helps to achieve financial stability by ensuring the financial security of borrowers by enabling them to take timely and risk free decisions. Corporate finance must incorporate corporate investment strategy, corporate lending strategy, and long-term finance options such as short term cash funding. It is also important to build up support for banks and other lending institutions through effective corporate lending strategy.
Corporate finance is closely related with accounting and auditing because they often are regarded as two different organizational functions. Although they share some core operational functions, they operate in different systems and have different goals. They therefore need to integrate their activities to maximize the results. Auditors and accountants perform various roles in the corporate finance process and are usually graduates of an accounting or finance program.
Graduates from finance and accounting programs may have an advantage for career advancement in corporate finance because these students are expected to have good problem solving and analytical skills. These skills are needed in developing financial solutions for corporate finance. They can apply their knowledge in several different areas of business such as corporate finance, banking, and accounting. There are various universities and colleges that offer finance and accounting degrees. Students who wish to pursue a career in finance may therefore be qualified to get an accounting or finance degree through a top notch university or college.