Financial Decision Making: Role of Accounting and Finance in ALPHA Limited

FINANCIAL DECISION
MAKING

EXECUTIVE SUMMARY
The financial decision making is crucial procedure that helps organization to move
towards success. Present report is based on ALPHA limited that operates in manufacturing
industry and has objective of expanding its scale of operation. The current case study has
comprised the role of accounting and finance in organization with examples. Ratio analysis has
be exerted in report for analyzing financial performance, consequences of prevailing
circumstances on ALPHA limited and improvement in required area for getting success.

TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................................4
MAIN BODY..............................................................................................................................................4
TASK 1.......................................................................................................................................................4
Describing Definitions.............................................................................................................................4
Explaining general Explanation with example.........................................................................................4
Analyzing the role of accounting and finance with in ALPHA Limited (AL) alomng with evaluation &
examples..................................................................................................................................................5
TASK 2.......................................................................................................................................................8
a) Calculations of ratios.......................................................................................................................8
b) Analyzing the performance of ALPHA Ltd for two years.............................................................10
CONCLUSION.........................................................................................................................................13
REFERENCES..........................................................................................................................................14

INTRODUCTION
Financial decision making is refers to analyzing, managing and monitoring the monetary
resources of organization to get effective outcome. Accounting department is responsible for
preparation of financial statements, bills, etc and financial area is concerned with borrowing &
managing monetary resources of company. In the current era, it becomes crucial for the company
to have appropriate approach for taking financial decisions so that competitive advantages can
be gained to overcome competition prevailing in industry. The selected company in present
report is ALPHA limited which is manufacturing organization of UK which ahs aim to expand
its operational practices. Current report will comprise the role of accounting and finance
function within the company along with examples. Present case study will include ratio
calculation and performance evaluation for recommending required improvement action.
MAIN BODY
TASK 1
Describing Definitions
Accounting refers to procedure of recording, summarizing, analyzing and reporting
business transactions. In addition this, it is one of the key function of organization that provide
assistance in recording large complex commercial transactions. Accounting play crucial part in
assessing the detailed information by giving emphasis on each aspect so that relevant & reliable
decision formulation can become possible. It ensures accurate and time record of finances of
companies that provides ability to make stable functioning in industry.
Finance is concerned with raising & managing the funds required for organization. It is
one the most important aspect of firm that permits company to have ability for obtaining
continuous functioning of its operational practices. This comprises strategic planning,
budgeting, cash flow management, cost controlling, profit evaluation, managing risk, etc.
Explaining general Explanation with example
Accounting is concerned with measuring, processing and communicating important
information of organization by covering all financial and non monetary aspects to provide depth