Finance

Finance referred to in a general sense funds and assets ( SITUATION ), in the strict sense, the revenue and expenditure of the state. In economics, so that all activities are "round numbers " means, in addition to the (financial) accounting and the financial statements derived from the calculation ( cost-accounting ); usually covered with it the financial industry.

In the 1950s, developed in the U.S. from the accounting department and parts of the financial accounting the financial controlling; Germany followed this development about 20 years later. The Controlling was responsible for the areas of planning and control. About a decade later split from the remnants of Financial Accounting or Accounting from the Treasury. A more recent development is the post of Chief Financial Officer ( CFO), which is responsible for all areas of finance (accounting, controlling, treasury, liquidity ) and advising the Chief Executive Officer ( CEO) in financial matters.

The original accounting, which only collected the numbers and managed and was so focused on the past, has changed to the effect that all numbers of the past and to interpret this decision bases for the future direction of a company are to be developed. An important method here is to create a financial plan to ensure liquidity in future accounting periods and to make threatening shortages seen. Thus, the position of accounting has changed fundamentally in business: finances stood formerly in the shadow of visionary management, they are today the filter, the visions of our audit have to go through on their financial implementation options.

Word origin

The plural form of the word finance appears in the German-speaking countries for the first time in the 17th century and comes from the French finance ( s ) that the (state ) designated management of monetary affairs at the time. The name came originally from Latin finis, which in classical Latin meant "border", later in the figurative sense, " customs ", as a levy for goods in transit across a border.