Relationship Between Accounting And Finance Accounting Essay

Published:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

The systematic recording, reporting and analysis of financial transactions of a business. The person in charge of accounting is known as an accountant and that person is generally required to follow a set of rules and regulations such as the Generally Accepted Accounting Principles.Accounting allows a company to analyze the financial performance of the company, and look at the statistics as net income. 

FINANCE 

 A branch of economics concerned with resource allocation and resource management, acquisition and investment. Simply, financing transactions with issues related to money and the market 

ACCOUNTING 

Field of accounting that treats money as a means of measuring the economic performance. It encompasses the whole system of monitoring and control of money as itflows inside and outside the company as assets and liabilities, revenues and expenditures. gathers financial accounting and financial data summarizes the preparation of financial reports such as balance sheet and income statement of the firm'smanagement, investors, lenders, suppliers, tax authorities and other stakeholders. 

FINANCE AND ACCOUNTING RELATIONSHIP BEWTWEEN 

Finance and accounting is not the same thing. Accounting is concerned with financial records 

maintenance, production of periodic reports, statements and analysis, and dissemination of information 

managers and, to some extent, investors and the world outside the company. It is also much to 

quality, relevance and timeliness of its information production. Obviously financial decision makers rely 

heavily on accounting reports and accounting database. The knowledge of past events can be a good 

information pointer to the future, so reliable in the past is invaluable. However, the role of financial 

Manager does not provide financial information, but decisions involving finance. In small companies, 

whose portfolios are close to the powers of management, accounting and CFO may be the same 

person. In large organizations, roles are more likely to be discharged by different persons or groups of people 

Under constant pressure from the practical needs of economic science on corporate finance has

permanently and achieve remarkable results. From the point of view of theoretical knowledge 

corporate finance to collect information microeconomics, they are linked to economic activity- 

science, closely linked to accounting and the use of mathematical and statistical methods. 

Corporate Finance are the system of monetary relations, in which the company acquired the financial 

between sources, their introduction and binding in all components of private property in order to exploit 

productive property and distribute the results. 

Monetary relations which constitute the content of corporate finance can be divided in terms of their 

character's point of view of subjects from which they are trained and by field of 

entrepreneurial activity, or other aspects. 

PRIMARY AND SECONDARY FUNCTIONS OF THE COMPANY 

The functions of a business can be divided mainly into two types called production and marketing. These two functions are interdependent. 

Besides the two main functions, there are a number of support functions such as accounting, advertising, financing, staffing, management and research and development. All these functions can now be classified under the following headings: 

Production functions: the production function involves the creation of goods and services with the help of money, men and materials. For the purposes of production of multiple processes and techniques are employed. Production functions involve the placement of facilities and planning, construction of facilities, production planning, repair and maintenance and quality control. As production assistance for the establishment of public services, which has been considered the most important function of the company. 

Service Marketing: Marketing function is mainly related to the distribution of goods and services between people. To market the product smoothly, the marketing director decides on the product, its packaging and labeling, in deciding the distribution channel and promotion of future sales. Marketing functions will include four "like product P ', price, promotion and physical distribution. 

Finance function: Finance is considered the lifeblood of the business unit. This function includes planning, procurement and use of effective enterprise funds. The Head of the Department of Finance estimates the financial needs, investment funds short-term or long term, the determination of capital structure and identifying sources of raising capital. 

staff function: This function is concerned about the human side of the business and concerned about the procurement, development and maintenance of the workforce effectively and efficiently. Duties include staff selection, training, promotion and transfer, payment of wages, welfare activities and industrial relations. 

Service desk: modern business can not operate without an office. The various office functions that ha to do the business information and documents, efficient generation and collection of documents, document retention and effective communication. These functions are sometimes referred to secretarial duties or functions of public relations. 

RELATIONSHIP OF FINANCE AND BUSINESS ACTIVITIES 

 Relations with the production of Finance 

production department main duty is to produce goods. For the production of goods, they need raw materials, labor and other costs. To pay all expenses, production service needs money and funds that will be completed by the financial service. Ministry of Finance controls the budget of the production department and allowing funds to the production department. With this perspective, we can understand that service production depends on the decision of the Ministry of Finance. Now, if the production department performs his duty honestly and products are manufactured and sold on time, it will be useful for increasing sales and profitability and it will again recycle funds with high profits in the finance department . Thus, we can say both are dependent on each other. Both are players the team business. Both should be adopted for the cooperative to another. After the business team can succeed in business. 

Relationship Marketing Finance 

The main function of marketing is to sell goods to the maximum and satisfy consumers. input costs of its product will decline if all products are sold by merchants of the company. For product development, promotional activities and distribution of the marketing department need the money to pay vendors, the budget for advertising and other promotional expenses. For the marketing department does its marketing budget and it is outweighed by the financial department, but sometimes the Ministry of Finance will not all marketing costs but need specific marketing department expenses for this type of sales promotion. This will create conflict within. Good relations will be useful for both departments. If both do Department meeting and behaviors that show relatively good, the problem can easily solve. Both departments must think that both are from the corporate organization and coordination between them is essential.Sometimes the service on the market gets a big order for the supply of goods, the Ministry of Finance that the time should help the marketing department of the arrangement for money to buy raw materials and supplies fastly without any delay . 

Relations with the finance staff 

The staff is the science that manages employees of the business and finance is the science that manage money. If the service personnel and the work of the Ministry of Finance in consultation with the cooperation the two departments can meet business goals. It is the objective of the company to meet employees by fulfilling their financial needs. He is also the company's goal to reduce the misuse of funds by the payment of salary plus the necessary cost of doing work by an employee. Thus, both departments must understand the purpose and should help other departments to achieve the objectives. One more thing, financial decisions are also needed in the area of human resources. Corporate move to employee development. They are the human capital of the company. Now, plans to invest in employee training incentives, and retirement plans, etc. must be calculated like other investments, and the two departments should take maximum advantage of this asset. 

BALANCE 

balance sheet is a financial statement at any time. It provides an instant summary of what your company owns or is owed - assets - and it should - liabilities - at a given date. 

The record thus shows how your business is financed and how you use these funds. 

There are three ways you can use your balance: 

• for reporting in the annual accounts of a limited partnership 

• To help you and other interested parties as investors, creditors or shareholders to assess the value of your company at a time 

• as a tool to help you analyze and improve the management of your business 

CONTENT OF REPORT 

 balance sheet shows: 

• property - property for long term 

• assets - short-term assets 

• current liabilities - which the company should and must repay in the short term, 

• long-term liabilities - including the owner or principal shareholder 

The record is so-called because it is a debit entry and credit for everything (but can return to the profit and loss account), so that the total value of assets is always equal to the total liabilities. 

Fixed assets include: 

• tangible assets - for example, buildings, lands, machinery, computers, appliances and accessories - valued at their depreciated or resale value if 

• Intangible assets - goodwill, for example, intellectual property rights (such as patents, trademarks and domain names of websites) and long term investments 

Current assets are short-term assets whose value can fluctuate from day to day and may include: 

• Stock 

• Work in progress 

• money due from customers 

• cash on hand or bank 

• Short-term investments 

• Pre-payments - eg advance rents 

Current liabilities are amounts due and payable in the year. They include: 

• money owed to suppliers 

• Short-term loans, overdrafts or other finance 

• tax payable in the year - VAT, PAYE (Pay As You Earn) and National Insurance 

Long-term liabilities include: 

• Creditors due after one year - amounts to be repaid in the form of loans or financing, after a year, for example, bank loans and / or directors of finance contracts 

• capital gains and capital reserves - shares and retained, after dividends (if your business is a limited liability company) or capital invested in the business of the owners (if you're an unincorporated business ) 

By law the review must include the above in bold. However, everyone understands that vary from company to company. external auditor of the company will usually decide how to present information, but if you have a qualified accountant for the staff, they can make that decision.

Writing Services

Essay Writing
Service

Find out how the very best essay writing service can help you accomplish more and achieve higher marks today.

Assignment Writing Service

From complicated assignments to tricky tasks, our experts can tackle virtually any question thrown at them.

Dissertation Writing Service

A dissertation (also known as a thesis or research project) is probably the most important piece of work for any student! From full dissertations to individual chapters, we’re on hand to support you.

Coursework Writing Service

Our expert qualified writers can help you get your coursework right first time, every time.

Dissertation Proposal Service

The first step to completing a dissertation is to create a proposal that talks about what you wish to do. Our experts can design suitable methodologies - perfect to help you get started with a dissertation.

Report Writing
Service

Reports for any audience. Perfectly structured, professionally written, and tailored to suit your exact requirements.

Essay Skeleton Answer Service

If you’re just looking for some help to get started on an essay, our outline service provides you with a perfect essay plan.

Marking & Proofreading Service

Not sure if your work is hitting the mark? Struggling to get feedback from your lecturer? Our premium marking service was created just for you - get the feedback you deserve now.

Exam Revision
Service

Exams can be one of the most stressful experiences you’ll ever have! Revision is key, and we’re here to help. With custom created revision notes and exam answers, you’ll never feel underprepared again.