Necessity of Accounting and Finance Functions in Business Enterprise

INDIVIDUAL
WRITING

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Examination of Necessity of Accounting and Finance related roles, functions and duties
within business enterprise:..........................................................................................................3
1.2 State multiple source of finance which are available with small and medium entities for
the role and purpose of expansion:..............................................................................................6
TASK 2............................................................................................................................................7
2.1 Computation of ratios of Panini Ltd:....................................................................................7
2.2 Assessment of Performance of the business of the organisation of 2 years:........................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The report prepared as under takes into account the process which has been adopted and
applied by several corporations which would help in identification of the pros and cons with
relation to utilisation of funds (Yin and Du, 2022). Decision making would be having a
significant part of the organisation which would be ensuring the funds that are being utilised as
more efficient and effective manner. In such report, the discussion which has been carried out is
linked with the necessity of finance and accounting function for the business enterprise and their
roles as well as duties within the company. Further the discussion has been carried out in context
of various sources of funds which are being available in relation to carry out the expansion for
medium and small enterprises. At the end of report examination which has been conducted is
known as Panini Ltd for the year ending on 31st December 2018 and 2019 respectively such that
performance could be assessed. Such ratios are being computed by taking in account
profitability, solvency and efficiency of the organisation.
MAIN BODY
TASK 1
1.1 Examination of Necessity of Accounting and Finance related roles, functions and duties
within business enterprise:
Accounting is observed to play a important and vital role in delivering the role in right
manner and carrying out several activities in the business enterprise as it would be supporting the
firm in having a proper track of income being generated and expenses being incurred which are
being counted throughout the working of financial year. Not only this but it would also ensure
and assure compliance which would be related to significant laws which are being applicable to
the firm, it would also help in giving the mandatory data relating to final prepared accounts
which are being applicable with the working of business, it would also help to provide required
information which would be related to final accounts for government authorities. Stakeholders
and shareholders (Weber, 2018). This data can serve and result to be useful for them in carrying
out decision making in context of funds bing invested by them in the corporates. The accounting
function prepares key financial statements that are being discussed as under:
 Balance sheet which would reflect positioning of corporate as on a specified date.

 Cash flow statement which would be counted and considered as a linkage between the
statement of profit and loss as well as balance sheet reflecting the cash generated and
spending within the financial year.
 Income statement which deal in revenue or income which has been been generated in a
respective accounting year.
The advantages of accounting function, along with roles and duties are stated as under:
ACCOUNTING FUNCTIONS :-
Accounting is an important source which helps an organisation to prepare the financial
resources of a company. With the help of these functions, a business entity is able to maintain the
accounting history of all that the business performs as it also helps the administration for audit of
the business organisation (Ulgiati, Casazza and Yang, 2021).
The Various functions of accounting includes systemic tracking, storing, recording,
analysing, summarising and reporting of a organisations financial activity. With the help of the
financial functions of accounting, the business is able to maintain and record its transactions and
use the same for making reports, budgets and for cost reduction in the company and its working.
The main functions of accounting are :-
1. Maintaining records of financial transactions:- Accounting assists businesses to keep an
accurate and updated recording of the every day business transactions of the organisation,
such as receipts and payments, credit purchases or sales.
2. Preparing financial reports:- Accounting helps the business to prepare the financial
statements related to the business in the detailed annual reports or the quarterly reports
that the businesses prepare related to the company's working, profits, major decisions as
this reports gets available to the stakeholders, investors, tax authorities.
3. Preparation of business budgets:- The accounting data helps the business when the
preparation of the budgets is required for the business as the accounting department can
go through the financial need and requirements of the business and can prepare the
budgets accordingly.
4. Performance review :- The accounting reports prepared helps the business to keep and
check the performance of the business and its employees and also helps to measure
whether the business is able to achieve its goals in the required manner or not.