Financial Decision Making: Role of Accounting and Finance in Samsung

Financial decision making

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................3
Task 1...............................................................................................................................................3
Role of accounting and finance within the organisation..............................................................3
Task 2...............................................................................................................................................6
Calculations of ratio.....................................................................................................................6
Performance of Alpha Limited....................................................................................................8
Conclusion.......................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Financial decision making is not easy but very important to take t properly because it will
decide the future of the company. Effective decisions will help company to smoothly survive for
long time and wrong decisions can be to failure. To take financial related decisions company
should have such workforce who have finance knowledge (Brierley, 2017). Samsung is the
multinational company which deals in electronic devices like mobiles phones, television, laptops,
house related appliances etc. this report will discuss the role of accounting and finance in the
company and why it is important. Further it will evaluate different ratios calculated from
company's financial statements.
MAIN BODY
Task 1
Role of accounting and finance within the organisation
Accounting:
Accounting is the method to record all financial transactions related to business. The
process of accounting involves reporting, analysing and summarizing the transactions in order to
regulate agencies and tax collection. The financial statements which is used in the accounting is
the summary of financial transactions of the business and also show its financial position.
Finance:
finance is the wide term which identifies activities which are related to capital markets,
banking, investments, debt, money etc. in general sense finance can be said as money
management and is also the method to acquire needed funds.
When it comes to accounting and finance then it plays important role in the business.
Business runs with the help of money so it is important that money is utilised and control in
proper manner so that business can run smoothly (What is the Role of the Accounting and
Finance Department., 2021). Accountant in the company like Samsung plays vital role because it
helps company in managing their expenses and incomes and also checks the flow of money.
With the help of proper accounting practice, company can understand flow of money and then
can start with budgeting. In the budgeting process company checks revenue and allot money in
doing different business activities and also make decisions about the growth of the business. It is
helpful in achieving proper financial records. It also helps in checking company's past
performance so that they can improve in the future. After seeing the financial statements,

stakeholders of Samsung can find out that where the money is going and also from where it is
coming and what benefit it will going to provide in longer period. Every business want to earn
profit and profit making is the main objective of the company. To get increased profits company
have to build strong strategy. In order to make strategy Samsung checks financial statements of
their company with the help of that they can understand the market condition in which they are
operating.
It is also helpful in fixing budgets. Budget refers to the incomes and expenditure of the company.
By using financial statements company can make master budgets which consists of incomes and
expenses. With the help of budget company can create different reports. Accounting also helps in
analysing the costs for the business (Ding, Hellmann and De Mello, 2017). As with the help of
accounting business gets understanding about the costs of the products and also on what amount
it should be sold which can help company in getting high profit margins via high sales volume.
With the help of financial records, Samsung can also analyse their business performance. As
financial records will show operations results and also financial position of corporations. In
simple language, it is helpful to know that financially what is happening inside the business. It
can be find out that laws and regulations are constantly changing. But with the help of proper
accounting systems, statutory compliance can be ensured. As with the help of accounting
systems company can make sure that liabilities like VAT, incomes and sales tax or other taxes
are properly paid. It is also helpful in filing financial statements with the registrar. Entities like
Samsung which are listed on stock exchange which are needed to file them.
It is also used for the purpose of filing direct or indirect tax. Accounts and finance professionals
plays important role in protecting company's assets. Assets are protected by designing and
executing internal controls. Accounting and finance department also provide assistance in the
inventory and management control. As this department can better control and manage inventory.
To prepare financial statements for the company is the legal responsibilities for every company.
So finance and accounting department will help company in preparing financial statements.
Accounting services are necessary for the business. Samsung have experienced accountants who
can easily work with advanced accounting systems and also helps in overall accounting
processes (Warren, Quinn and Kristandl, 2018). It can be said that without accounting
department an organisation cannot survive for long period because company will not get idea
that where there money is going because they will not able to manage that money. Accountant is