Financial Decision Making: Importance of Accounting and Finance Functions, Financing for Expansion, Ratio Analysis

FINANCIAL
DECISION MAKING

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Examine the importance of Accounting and Finance related functions, duties and roles within
a company....................................................................................................................................1
Describe various ways which would help to finance company for expansion and growth
purposes.......................................................................................................................................3
TASK 2............................................................................................................................................4
Calculation of ratios.....................................................................................................................4
Explain possible reasons for observed changes in financial ratios calculated for two years.......5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The study that follows provides an overview of how financial and accountancy function in a
business (Ahmed, Manwani and Ahmed, 2018). It aids in determining what are the most
significant activities, positions, and responsibilities in a company. The study then goes on to
cover Panini ltd, a medium-sized firm that specialises in producing breads for retailers in the
United Kingdom. It intends to increase its activities and activities in the upcoming months as a
result of its current accomplishment record. It also aids in comprehending the importance of the
proportions produced beneath, which offer a broader and more effective image of the firm
through time. It also aids in the discovery of different sources of finances that can be used for
prospective development and success.
TASK 1
Examine the importance of Accounting and Finance related functions, duties and roles within a
company
Accountancy could be defined as the gathering, organizing, and compilation of information
in one location, as well as the documentation of relevant financial activities. Accounting
information, documents, and analyses assist businesses in giving appropriate advice for the
administration of assets and limited assets. It could also be defined as a method that maintains
accurate accounting records and organises relevant finance related sectors. Accountancy's
primary goal is to evaluate both worker and corporate productivity. As a result, it aids in
determining the success of the company in the market, and also money infusion and circulation
throughout firm's operating cycle. It is used by traders to determine whether or not it is profitable
to contribute funds (Altan and Karasu, 2019). There are numerous aspects of accounting that are
beneficial to Panini ltd. The following are a few examples:
 Analyze the results: Accountancy aids in the appropriate evaluation of the Panini ltd.
corporation, which is essential in ensuring a lengthy corporate life span in a dynamic
global setting.
 Document relevant activities: It is critical for Panini ltd to keep track of dealings in order
to present an open and unambiguous image of how the firm is operating in the market.
Accountancy plays a variety of roles that aid in the economical and successful running of a
firm. Here are a few examples: