• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Finance Department.

Extracts from this document...

Introduction

The 'Finance Department' has the responsibility to see that the money coming into and out of the business is managed properly. If this is done efficiently then there should be enough money to pay the bills that are due. The 'Revenue' is used to pay for the things they had to buy in order to run the business. It is also used to pay the workers. The revenue is the money made by the business by selling its products and services. This chart shows the main activities of the 'Finance Function': The 'Finance Director' is in charge of: financial accounting, costing & budgeting, managing finance and payroll. Financial Accounting deals with recording transactions, keeping accounts and preparing the reports for management. Costing & Budgeting deals with working out the cost of products, analysing past costs and income and setting targets for the costs and income. Managing Finance deals with working out what resources are needed and raising capital and loans for the finance resources. Payroll deals with keeping track of the amount of hours worked by employees and calculating the pay & deducting taxes. 'Keeping records of all financial transactions' is one of the main functions of the finance department. ...read more.

Middle

The other is retained profits; this means that some of the profit a business makes it can use it to purchase the resources the business needs. A company can sell shares to raise more capital in the business. The people that buy the shares are known as the companies' shareholders. This means they own a share of the business. This is a very important function for Tesco because if the finance department don't raise enough capital then it will not be able to buy the resources it needs in order to make itself more effective. Every business needs resources to trade successfully. Capital is the starting point for every business without it a business can hardly do anything. The finance department of every business including Tesco works with and supports nearly every other functional area of the business. Here are examples of how the finance function works with or supports other functional areas of the business: It has to pays debts and place orders of other departments inside its business. It tells the other departments of how much money is available to them and also gives advice. Such as if the 'Marketing and Sales' department of Tesco are going to spend �500 on a new TV advert and the finance department ...read more.

Conclusion

This is what the finance department expect from all the departments. However, if bills are not paid that department that ordered the goods won't be blamed because they are dependant on finance to pay the bills. If some of the food items of Tesco have not been delivered because the previous bill didn't get paid the production department as well as the customers would suffer because of the finance department. The finance department has to record the sales of products that Tesco sells. This shows that it is involved with sales too. The finance department also expects accounts to be kept by all departments so that it can be able to calculate profit or loss. Then it will be able to produce the 'Profit & Loss Account'. This is how the finance function supports and works with all the other departments. It deals with the money matters of the other departments and if it makes any mistakes like forgetting to pay a bill etc, then there can be big problems which would stop the business from becoming more better and successful. These mistakes can create a bad reputation of Tesco even if it is just the finance departments fault. If the finance department wants to try and avoid these mistakes then it has to work with and support the other departments effectively. By Dolly Shah 10M 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level ICT in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level ICT in Business essays

  1. Tesco Finance Department

    Advertising in tesco The main aim of the advertising that a business does will be to attract customers and to increase their sales. The different methods of advertising are: * Television - This will get your business across to millions of people.

  2. In this assignment I am going to produce a detailed business report on a ...

    If Tesco does not make quality, a central theme of their mission purpose and culture will find it increasingly difficult to succeed, particularly if their consumers become more sophisticated and less loyal to one supplier. Quality assurance and quality control is very important to Tesco, in order for Tesco to

  1. Business Aims and Objectives.

    The aim of resource management and waste minimisation is to reduce and refuse waste. This can be done by: * Operating more efficiently to minimise waste * Recycling waste materials * Disposing of dangerous or special waste responsibility and according to the law.

  2. Human resources

    Family businesses are mostly micro and small enterprises. Every year, they create 60 to 80 per cent of all new jobs in the European Union and two thirds of private employment in Europe. Therefore, they are considered the backbone of economic activity of the member states.

  1. For my GCSE business studies I have to make a portfolio investigating two contrasting ...

    emails to each other - Analysing the reports - Purchasing uses IT to send the orders Store operations at Richer Sounds Jez Avens is the deputy MD of the store operations. The colleagues who work there in operations, distribution, stock control and service and repairs assist him The responsibilities of

  2. Report on Tesco plc

    Tesco is registered under the company's act 1985. 1.6 Comparison of companies A comparison with Tesco to Morison's is to be made because they are both big retailers in Britain but the difference is that Tesco is not just a British company they went multinational and expanded to sites all over the world and not just England.

  1. Sales Department

    At the end of the day sales data is transferred to the head office via a modem or broadband connection. EPOS Output This system has a number of outputs. The most obvious one is the till receipt which is printed at the time of sale.

  2. Introduction to Business Finance.

    * There has been an error on the invoice e.g. the prices. * When damaged, faulty or unsuitable goods are returned. This will follow the invoice. The document will be sent after either the buyer or seller has highlighted the error or fault.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work