Archive for December, 2009

Essay on Financial Discipline

December 24th, 2009 No comments

Financial Discipline is being disciplined in financial matters i.e., following the rules and regulations that are framed in business for its operations and instructions. Financial Discipline is being in the grid framed by the business rules.

In the same way finance builds or breaks the business. It is very necessary in every transaction and operations. Even to start or move or contact with other people money or finance is needed in every nook and corner of the business. That is the importance of finance in business.

And now importance of discipline. Discipline in narrow way looks to be the force drawing backwards but actually it is the one, which holds it firm, sustaining and survivable. It is just like a thread holding the kite down. When we see we feel that the thread is making it to be at down but actually it is the one which makes and makes it flying up in the sky with all the great swings. If the thread of the kite is strong then it can tackle all the swings and twists that would happen in the sky that is in the same way Financial Discipline holds the business in various turns and twists in its business run. Without the Financial Discipline business can’t run smoothly.

For ex:- we have made a decision or a rule to spend 1 crore in a business. But if we exceed it to 1.25 crores then it multiplies to a deficit of in crores with in few years which we will not be able to fill up. That is the reason Financial Discipline is very necessary. When we make a decision or rule to spend some money our stipulated expenditure shouldn’t exceed that decided money. Read more…