What does the finance department do?

<< 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.

Punch cartoon (1907); illustrates the unpopularity...

President's Advisory Panel for Federal Tax Reform

English: Moscow-city 2010,March

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...