Speak the language of business

In the business world, what matters the most is the growth of business, and it comes at a quicker pace if you speak the language of business. Every business has three processes always running, one about the past, the other about the present, and finally a one about the past. So consequently, these three processes, set about three main subject areas of business and because of which the business language as it is known to any businessman comes in three ways-

• Accounting
• Finance
• Economics

Accounting

Accounting keeps the accounts of your business over a period of time. Naturally, the business information, as it is called in accounting, the historical information, is stored in accounting records. It shows the past performance of a business, and if studied carefully, can open the doors to business growth. The accountant who holds the key to this accounting information, must look for patterns emerging in the account books, so that he could predict the future.

Finance

Finance has the power to change your business, as you look forward to allocating funds to the various entities in your business. Finance is about funding the business activities so that they grow. Like a tree needs water to grow from a seed into huge proportions, so your business needs money to finance the various activities your business performs. If accounting tells you about your past, finance is all about your present, indicating how to allocate funds to various business activities.

Economics

Economics studies the human behavior that converts the desire to buy products into actual sales. It has in its scope the future of an enterprise, nation or an organization. Economics determine how and why an individual should act in apericular way to buy a product and then consequently takes the corrective measures to succeed in generating money, and hence the growth of the business. It employs the financial forecast on the basis of study of demand/supply curve.

To succeed in business, the business should be apt in the three areas as mentioned above. By taking care of Accounting, Finance and Economics, a manager can steer the company to success resulting in the growth of business. If growth is the main option of a business, it must target the three areas as discussed in the preceding sections.