The importance of money in our current way of life has caused much attention to be paid to how it should be managed, originating disciplines that support the study of the generation and expenditure of the resources that we obtain through our daily work, as well as the ways of generating income through investments. Accordingly the tax submissions are done.
We can say that finance with taxation is the art and science of money management, so financial management is a discipline that helps us plan, produce, control and direct our economic life.
Tax management in our daily lives Similar to a company, people generate and spend resources to achieve a financial objective and, like a for-profit organization, we must seek to maximize the utility of our income, in order to achieve growth and greater well-being.
The taxation administration initially only dealt with the companies and due to the personal need to adequately manage our resources, the figure of the personal financial advisor or administrator originated, which on many occasions is represented in the figure of an insurance agent or an executive banking. However, there are advisers specially dedicated to this activity. You can calculate sales tax also.
What is financial management?
In this activity, our financial life is planned, objectives for purchases and savings are set, our income, expenses and activities are estimated to control accounting records.
Properly accounting for our income and expenses, as well as correctly analyzing ways to keep track of money, are options to look for when raising our funds. A checking account, a debit account or credit through a card, should be analyzed based on our economic capacity and financial objectives. The availability of funds and maximization of interests are the characteristics that we should look for when it comes to managing our money.
Investments and assets
Each purchase or investment must mean growth in our finances. They should be analyzed based on their financial productivity, that is, buying a real estate will be more financially productive than buying an asset that may depreciate in the future. Knowing about investments will give us the tools to achieve profitable investment purchases over time. The taxes are calculated accordingly.
It is essential to know the characteristics of the payment of taxes in order to fulfill our contribution in an orderly manner, taking advantage of the deductibility of the expenses that we make in our productive activities.
This aspect considers the way in which we invest savings. It is important to emphasize its importance, since keeping it as an objective will be the line of action that will lead us to achieve our objectives in the shortest possible time.