Importance of Accounting and Finance functions in SKANSA PLC

Financial Decision Making

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Importance of Accounting and Finance functions, duties and roles in SKANSA PLC:.............3
TASK 2............................................................................................................................................7
Calculation of of ratios for the company and comment on performance of company................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business decision consists of a series of steps or a procedure to assess the advantages and risks
of activities in response to asset utilisation. The key aim of this research study is to highlight all
the crucial considerations that all businesses have to take into consideration in order to extract
useful information on economic activity. Business judgement offers options for optimising the
investment capital necessary to fulfil the goals of the company until a genetic predisposition
factor is met for firm social performance (Valaskova, Bartosova and Kubala, 2019). It presents
the monetary decision approach with both a realistic and metaphysical context. The central
aspects of all business decisions are financing, investments, delivery and management of
networked properties. The current research focuses primarily on SKANSA PLC, that was
established as a UK-based construction business in 1984. A quantitative evaluation of the
organization's financial situation using profitability ratio is protected by the study report.
TASK 1
Importance of Accounting and Finance functions, duties and roles in SKANSA PLC:
All these ideas provide a cumulative essential role for the organisation, which is used to carry out
its operating operations, in order to accomplish organisational targets, finance and economics. It
is understood that the way in which the financial statements of a corporation are recorded,
obtained, categorised and released is the accounting that is needed to make the necessary
strategic decisions. Each organisation must analyse the potential practises and the details which
include the needed information and to track the activities. In the SKANSKA PLC case,
management uses the key functions of both corporate finance to monitor their sector by
calculating both corporation sales and expenses in order to maximise efficiency.
Types of accounting and finance function
Financial planning-This is considered as the key commercial aspect for the organization's fiscal
mitigation and response but also helps to render expenses for this assistance. Leaders are
accountable for applying the financial education process within the SKANSKA Organization by
keeping both organisational and financial transactions into consideration (Rasheed and Siddiqui,
2019).
Managerial Accounting- Which is the system of creation of records, management of operational
and finance procedures and compilation of industry records. SKANSKA administration carries

out these activities in order to assist with successful business decisions thru the compilation of
financial or critical records.
Financial accounting- This requires the storage of accounting records for all expenditures, the
use of the quintuple reporting record system as well as the processing of final reports that are
required to fulfil the various legal standards for record keeping, regarding antibiotic and growth
period.In most early to large businesses, the finance manager, who will generally report to upper
management, is the party responsible for this task.
Supporting the business strategy and making financial policies- The financial main goal is to
create a monetary environment that promotes finance and commercial strategy. In order to fulfil
the goal of the company and have the organisational performance advantages in terms of possible
opportunities, the perfect amount of narrower and lengthier accounting and capital resources
should be made available. All managers have the main duty of generating value, and the
investment officer's key points are to enable them to accomplish this.
Importance of Accounting and finance functions, duties and roles:
Earnings and Spending Monitoring-Accounting finance is a primary business function and
allows one to track accrued or consequently accrued profits and expenditures (Lusardi, 2019).
For the department, identification of costs and management of the intent is important. In the
SKANSKA Company, administration uses operational and finance processes to monitor earnings
and expenditures that help increase productivity.
Sound and efficient business planning-Financial and reporting requirements are required in the
organisation as they seek to build management strategies that can strengthen the operating and
accomplish the goals of the globalized economy. In SKANSKA PLC, repair activities are a big
activity for the numerous organizational functions. In this context, leadership usually focuses on
wealth management, revenue, demand expansion, expected productivity climate and current
inventory interaction aimed at achieving financial advantage.
Allocation of business resources-Distinct actions are conducted out in the company, so
managers need to use accounting & financial elements that allow effective company decide how
to allocate funds to these various events in order to successfully achieve goal. In order to
optimise efficiency and optimal asset use, SKANSKA PLC management use accounting
information to identify and delegate all available marketing plans.