Importance of Accounting and Finance Functions in SKANSA PLC

FINANCIAL DECISION
MAKING

Table of Contents
TASK 1 Report................................................................................................................................3
Introduction..................................................................................................................................3
Importance of Accounting and Finance functions.......................................................................3
Roles and duties of Accounting and Finance functions within SKANSA PLC..........................5
Conclusions..................................................................................................................................7
TASK 2 Ratio Analyses...................................................................................................................8
a. Calculation of Ratios................................................................................................................8
b. Results....................................................................................................................................12
References......................................................................................................................................13

TASK 1 Report
Introduction
This report presents (express) the importance of accounting and finance in the business of
SKANSA PLS. Moreover, it contains the functions used by departments like finance and
accounting to help businesses setting up budgets or making sure the business stays profitable.
Importance of Accounting and Finance functions
Accounting and finance are involved in accounting and auditing business practices.
Understanding where inbound and outbound capital will help the client for better options that
push forward to maintain a strategic distance from disappointment.
Some of the importance of Accounting and Finance functions are as under:
1. Keep financial records
An organization chart is the place where accountants and business owners can keep track of
business expenses and expenses from day to day. A detailed group account registration can allow
a company to manage their future budget and understand their revenue (Jetter and Walker, 2017).
2. Stay away from legal problems
Keeping a cash register simply follows important business laws. Neglecting details can have a
profound effect on the board. Budget makers need to understand what expenses need to be
deducted, which valuations should be paid and when these responsibilities should be covered. An
incorrect budget account could scrutinize an organization and lead to an unnecessary legitimate
problem. Additionally, overseeing the updating of an office's accounts can result in the
organization failing to comply with the guidelines of the security law (Jetter and Walker, 2017).
3. Set a budget
Using budget ledgers and understanding revenue can help create a cost plan, and it is the
spending plan that keeps the business afloat. Cost provides a standard view of the financial
situation and examines the industry for future development and development. While making a
full spending gain, you need to consider costs, goals and anticipate sudden changes. Staying at
these numbers is crucial to keeping track of business, so it’s important to keep an eye on startups

and change regularly as you go along. Good accounting sets the direction for business
management and provides a solid foundation for strength and performance (Jetter and Walker,
2017).
4. Performance analysis
Efficient entrepreneurs are always signing up to see how their business is doing. An organization
can assess its financial position by looking at its historical and current records of liabilities and
resources and other balance sheets. An entrepreneur can use this data to see how the organization
is performing. These records provide an opportunity to take advantage of past messages and
decide on more informed choices about how to create a more useful future. Fulfilling the current
financial position can help identify new development zones that will help meet the key
responsibility (Jetter and Walker, 2017).
5. External communication
Matching financial data is important when managing external meetings. Clear accounting and
money for operators can be useful in getting down payments from a bank or attracting similar
speculators. Big money management makes it easier to provide tax reports to outside partners.
External clients will evaluate these relationships to determine how to continue to integrate them
into their business (Jetter and Walker, 2017).
6. Internal Communication
Financial reporting can also help entrepreneurs provide data to internal partners. This data may
be relevant to employees interested in sharing benefits and share-based compensation. Likewise,
these records allow owners to share the characteristics and shortcomings of their business with
their organizations. A licensing entity can achieve its financial strength through a reward
structure that can be used as a profit incentive (Jetter and Walker, 2017).
7. Developing strategy
Accounting and finance management encourage a sensible approach. Once you've created a
spending plan and broken down the information completely, it should be easier to have a better
deal to build a way to fulfill your primary responsibility. Looking at budget records will make it
easier to set up money-related educational options on everything from staff to flexible board.