How Business Operates: Importance of Accounting, HR Department Functions, and Financial Statements

HOW BUSINESS
OPERATES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 2............................................................................................................................................3
Importance of accounting in business..........................................................................................3
Different functions carried out by the HR department................................................................3
Key features of employment legislation-.....................................................................................4
TASK 3............................................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
This report will be discussing the importance of accounting in business and will be addressing all
the three accounting statement. Further, report will also be discussing the role of human resource
department in the company.
MAIN BODY
TASK 2
Importance of accounting in business.
Accounting is defined as the systematic recording of all the financial transactions that will help
owners, investors and suppliers of the company. Every business focus on accounting by keeping
separate department of finance as this financial records summarizes every transaction of the
business. Further, this will also analyse all the business accounts and will help company knowing
about the profits and losses of the company.
Accounting in business involves-
Income statement
Balance sheet
Cash flow statement
Importance of accounting in business is as follows-
 Accounting helps company to organize things in order.
 This also helps in taking important decisions for the company.
 This will help company in measuring financial performance of the company and form
new and different strategies.
 This provides back for the tax return claims.
 Accounting helps shareholders to be accountable for the losses if occurs in the company.
 Without it company will not be able to take loans and any other investment.
Different functions carried out by the HR department.
HR department carries various functions that are important for the organization. No organization
can run and achieve its goal on timely basis without the role of HR department (Stone, Cox, and
Gavin, 2020). This department is managed by human resource manager whose main role is to
provide effective human resources to the organization. The different functions carried out by the
HR department are as follows-