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.
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