IN ACCOUNT AND FINANCE
1. Understanding the accounting or payroll function within an organization
1. Explain the role of accounting or payroll and other financial functions within the business.
The financial functions within my business organization include:
• Financial accounting
• Management accounting
• Payroll (outsourced)
The financial account function in our company is in charge of recording transactions between our company, our customers, suppliers, employees and shareholders using a nominal, sale and purchase ledger and taxation records.
Our financial controller Tony will then use all the information to prepare documents for external use to the company which are required by the law such as financial statement and tax forms.
Balance sheet or SFP
Profit and loss or IS
The above documents must be presented in compliance with detailed regulation, audited when necessary and must also be made available to suppliers, customers etc.. on the Companies House website.
VAT returns form to be submitted to HM Revenue and Customs
PAYE submitted to HM Revenue and Customs.
It is very important that the financial controller keeps up to date with law regulation in order to avoid penalties or gain benefit from new laws.
The financial function is also in charge of credit control and to advise the sales department of any overdue customer’s account.
The management account function in our office is in charge of producing documents for the company’s internal use only and which are not regulated by law.
Those reports will help the company in its decision making process by comparing performances and help generally running of the business.
Some of the compiled documents are:
Sales analysis: by product – by country – by area …
Evaluate sales by area manager
Annual budgets and flexed budget done quarterly in order to analyse variances and keep the variable costs to the minimum.
Cash flow’s reports.
Our payroll department is outsourced but it provides the company and its employees with important information about salaries, national insurance taxes, pensions, contracts etc..
2. Identify the contribution of those in accounting or payroll and other financial roles to maintaining the smooth running, solvency and legal compliance of an organisation.
The company I work for is a manufacturer and distributer of wallpaper. Our main range of products is designed and printed by us whilst a small but growing side of the business is dedicated to the distributions of a sister company’s products which are produced abroad.
The main company’s objectives we aim to achieve are sales growth, profit maximisation and also customer satisfaction.
The account department has a key role to insure that every department within the company works efficiently toward the businesses’ goals.
Some of our daily tasks ensure the smooth running of other departments for example:
Entering cheques and BACS payment in the sales ledger will avoid any delays in the sales department when taking or despatching orders;
Doing credit control and keeping the cash book up to date will give the financial department correct information about the company’s cash flow and therefore the company solvency
Annual budgets and flexed budgets will help keeping costs to the minimum and control the efficiency of the other company’s departments.
Opening new customer’s accounts speeds up the ordering process
3. Identify your appropriate reporting lines within your working environment.
My role in the account department is mainly to look after the sales and purchase...