Functions of Accounting & Finance Department and Ratio Analysis for SKANSKA PLC

Financial
Decision
Making

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Functions for accounting & finance department:.........................................................................3
TASK 2............................................................................................................................................6
Ratio analysis for SKANSKA PLC:............................................................................................6
CONCLUSION................................................................................................................................8

INTRODUCTION
Finance is necessary element for running business activities, it helps for gives funds for
businesses. Financial department helps for managing funds & using it for running various
activities which includes sales, marketing, finance etc. Finance is about managing funds, using it,
earning profits for businesses. Managers using financial statements which helps for taking
decisions. These financial statements includes cash flow, balance sheet, income statement etc.
accounting department helps for preparing these financial statements which helps managers for
financial decision making. Financial management is about planning, organising, analysing,
managing budgeting financial information which helps for strategic decision making. Businesses
using ratio analysis for knowing financial performance for businesses. It helps for knowing
business liquidity, turnover & profitability etc. The company which is includes for this report is
SKANSKA PLC. SKANSA PLC is a Construction Company based in UK. SKANSA PLC
started back in 1984. The company is planning to expand its operations to other countries in
Europe in the next ten (10) years. This report includes topics which are functions for accounting
& financial department. Apart from this it includes topics which includes ratio analysis which
helps for better performance which helps for higher profitability for businesses (Florendo and
Estelami, 2019).
TASK 1
Functions for accounting & finance department:
Accounting department: Accounting department is about which manages accounting
information for businesses. It manages businesses transactions for managing journal, ledger, trial
balance etc. These helps it for managing financial statements for accounting. Financial
statements includes cash flow statement, balance sheet, income statement etc. accounting
department using general accepted accounting policy rules for managing accounting for
businesses. In context to SKANSKA PLC, accounting department for business using GAAP for
managing its activities. It generating financial statements which helps it for strategic decision
making. Accounting department helps for finance department it gives financial statements which
finance department using for funds management. It shows where businesses should use its funds
for running its activities which helps for better performance which helps for higher profitability
for businesses (Hirshleifer, Jian and Zhang, 2018).