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Role of Finance and Accounting in Business: 18th December 2019
Role of Finance and Accounting in Business: 18th December 2019
Role of Finance and Accounting in Business: 18th December 2019
By understanding the flow of money through your business with proper accounting
practices, you can begin budgeting. In budgeting, you anticipate revenues and use that
knowledge to make decisions about how to maintain and grow your business. They help
to culminate good financial record keeping.
It is very important to analyze the past performance of the company in order to improve
the present condition. When you review the financial statement of a company, you can
see not only where the money went, but what good it did in the long run.
The goal of most companies is to make a profit, but the road to get there is one you
have to build yourself. The company comprises of financial data from within your own
company, which acts as one of the chief tools you have in understanding the economic
landscape of the market you are operating in.
Accounts in business are effective when it helps you understand what it costs to make
and sell your product in ways that let you see how different sales volumes will affect
your profit margins.
Your financial records reflect the results of operations as well as the financial position of
your small business or corporations. In other words, they help you understand what’s
going on with the business financially.
There can be a constant update of laws and regulations, but proper accounting systems
and processes will help you ensure statutory compliance when it comes to your
business. The accounting function will ensure that liabilities such as sales tax VAT,
income tax are appropriately addressed.
Accountants and finance professionals play a vital role in helping to protect the assets
of a company. They do this by designing and implementing viable internal controls and
management controls.
Inventory control and management are within the preview of the accounting and finance
department. No other department is better equipped to manage and control the
inventory of small businesses.