Final Decision Making

FINAL DECISION MAKING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
TASK 1............................................................................................................................................1
Importance of accounting and finance functions.........................................................................1
Task 2...............................................................................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Making the conclusive decision for some reason or thing can be said as the final decision-
making. In this project SKANSKA plc is planning to expand the operations to in other European
countries. Accounting and Finance function is concerned with Finance related activities in
organisation. Every with have a core objective that is to generate and increase profitability of
organisation and achievement of this objective reflects through financial position and condition
of business. Accounting and Finance function are highly important within an organisation
because they suggest how organisation is performing in terms of financial growth. Accounting is
concerned with recording of business transactions and creating different accounting statement to
ensure that all transactions are clearly recorded so that they can become basis for decisions of
organisation. Accounting and Finance in organisation also has some duties and rules to play such
as following then law, contributing in development of business strategy and decision making.
Financial performance of an organisation can be evaluated and analysed on the basis of
different ratios. Results from these ratios are also useful for investors so that they can make
adequate decision on the basis of performance of Organisation in terms of finance. Thus, this
report will discuss the management of the company. This project will also include the
importance of accounting in the context of this company. With the help of this project duties and
roles of this company will be discussed regarding its financial functions. In this report ratios for
SKANSKA PLC will book will be calculated on the basis of financial statement given. Ratio that
are to be calculated include return on capital employed, net profit margin, current ratio, average
receivable day or debtors collection period and average payable days or creditors collection
period. On the basis of different ratios performance of companies can be determined.SKANSKA
PLCis Sweden multinational construction and development company. It was founded in 1887
and is headquartered at Stockholm Sweden.
MAIN BODY
TASK 1
Importance of accounting and finance functions
SKANSKA plc is a UK based organization which is planning to expand its business in
the European countries. This will increase the business of the company. With increase in the
business of the company it will require accounting activities. Thus, the importance of accounting
crucial for the company to consider are (Hussein, 2018),
1

Planning Budget:
This helps the business in planning the budget. With the help of budget a business can
create strategies for saving money, calculating the expenditure. SKANSKA plc which plans on
expanding it business will require accounting to make the budget for the expansion and predict
the calculation of the expenditure.
Banks and lenders:
For the expansion of business this company will require funds and investments. The best
way of getting funds is to take loans from the banks and other lenders. In order to get the loans
from the bank accounting is very crucial for any company (Jebur, 2021).
Decision Making:
Accounting of a company helps in making decisions for the company. Financial
statement are provided by the accounting. Without the help of accounting the executives of the
company are not able to take any decisions. For taking the decision of expansion of SKANSKA
plc accounting is very important.
Information of investors:
With the help of financial statements and other accounts the company is able to know
about its stakeholders. These stakeholders are, debtors, government, creditors and investors.
Investors do not like to invest in the companies which do not have accounting records (AL-
Saegh, 2018).
Reporting profits:
Accounting helps the company to calculate it annual profits. For every business despite
its scale requires an accounting system so that it can keep the records of the transaction.
Allowing the company to predict its progress.
Finance functions for this company is very important. With the help of finance all the
financial records of the company can be kept. The importance of finance functions are,
Costs:
Finance function will help this company in understand how much it will have to pay its
suppliers for the company to make profit. For the expansion of this business the company will
require understanding of how much it will need to pay the supplier to continue its business in
different countries.
Revenue:
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