<< THIS CAN BE USED FOR JOB APPLICATIONS / INTERVIEWS >> when they ask what do you expect a finance department do - OTHERWISE can be used for Financial Accounting assignments :)! Hope it helpsThe Finance DepartmentThe finance department of a business manages money for thebusiness/company. The department records the financial transactions ofa business and helps it plan for the future financially.
Activities of the finance departmentRecording all the financial maters of a business/companyBusinesses and company's are constantly spending money or receiving itfrom the sale of its goods or its services. It is important that abusiness keeps a record of all this so that the business can:÷ Calculate whether the business has made a profit or not÷ Assess how much tax the business is going to have to pay÷ Help managers to make decisions financiallyPreparing annual accounts and reportsAll businesses make accounts to summarise their financial transactionsduring that year. Large companies and big businesses have to legallypublish a detailed account of their transactions throughout the year.
The most important parts which make up these accounts are:÷ The balance sheet, which shows both what a business owns and itsdebts÷ The profit and loss account, which records the profit or loss thebusiness has made over 1 yearDifferent accounts are useful to different people; some accounts mayonly be made for a specified audience or person to view. Examples ofthis are;÷ The Inland Revenue, they confirm that a business has paid the rightamount of tax or how much tax the business owes÷ Suppliers can see whether the business is able to pay them/debts÷ Shareholders can make a judgement on whether its worth investing inthe business÷ Banks they can see whether its worth them giving the company orbusiness a load or overdraft because that may not be able to repaythemPaying employees wages and salariesWages...
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