Financial requirements refer to the amount of money a business needs to acquire assets, pay liabilities, and manage its operations. This includes day-to-day costs, such as wages, taxes, employee benefits, and administrative expenses; capital costs from investing in fixed assets; and strategic costs related to long-term goals or objectives. Knowing these financial requirements is essential for any business as it provides an understanding of how much capital is needed to make sure that the business can reach its desired financial performance.