why is it important for companies to manage finances?

Public Comments

1. If they don't they will run out of money and go bankrupt. Also no bank will loan the company money to expand and develop without good financial records to show that the company will be able to repay the loan. The stockholders want to see what is happening with their investment. When a company is public the law requires that their books be audited. They have to have good financial records to pay their taxes and to take all the deductions they are entitled to take