Financial Decision Making

Financial Decision Making
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INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Task 1...............................................................................................................................................3
1. Critically evaluate the role of accounting and finance department of the selected
organizations................................................................................................................................3
Task 2...............................................................................................................................................7
1. Calculate ratios of ALPHA Ltd and comments on company’s performance..........................7
2. Analysis of ratios.....................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Financial Decision is another critical step made by the finance planner involving an
organization's investment-mix. It involves the borrowing and distribution of the funds essential
for the investment decisions (Carvalho, Meier and Wang, 2016). Financial choice-making
process is one of the firm's important aspects which help managers determine actual performance
and then make decisions appropriately. The basic aim is to include innovative or imaginative
concepts for attaining business objectives, visions and intentions. The report addresses specific
elements that are focused on two activities, the first being about Camden Ltd where the role of
the department of finance and accounting is discussed in organizational sense. Second, on the
other hand, is focused on Alpha Ltd's ratio analysis and objectively analyses its efficiency, and
how it can be enhanced.
MAIN BODY
Task 1
1. Critically evaluate the role of accounting and finance department of the selected organizations
Organizational Overview:
Camden Ltd is UK based company which h introduced in 1983 by Patrick Lavery and
Camden goods are designed for durability, optimum quality impact and, of course, power and
safety. They have heavily invested in uPVC recycle, and they are an environmentally friendly
company. Our first 80 % recycled inlite profile device can be created for us. It makes sure that,
whenever the windows and doors are from Camden they can have the highest price and allow us
to build the best outcome.
Finance and accounting division of Creams Ltd:
Financial division: The branch of finances is the division that manages organizational
money and other relevant elements of finance (Chiang, Nouri and Samanta, 2014). A finance
department's responsibilities typically include build strategy, scheduling, oversight, accounting,
and financial reporting. Typically speaking, the treasury department produces the organisation's
financial statements. The Finance Department is the element of an entity which is responsible for
increasing company funds, ability to handle funds within the organization, and organizing the
spending of resources on various assets.
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Accounting division: Facilitates the business to which it belongs with resources of finance
and financial support. In this department, all the transactions reacted to payable and receivable,
stock, salaries, fixed assets, and financial components were reported (Hernes and Sobieska-
Karpińska, 2016). Accountants review the records of each department in order to determine the
company's financial position and all the changes required for economic growth of the
company. The accounting division of Creams Ltd provides advisory services and monitors the
finances of an enterprise. Its responsibilities include account reporting, bill collection, customer
billing and cost and expense tracking, accounting and the management of critical tax documents.
Importance of finance and accounting department:
Department of Financing is important for Camden Ltd, which lets them recognize sufficient
funds for the appropriate services they want for production and further lets the company achieve
its priorities & objectives. There are some crucial aspects that this department of finance assists
with managing costs, efficient management of money, ensuring productivity rates etc. One of the
key roles of the department is to understand appropriate financial details before it is passed on to
executives and decision-makers with order to make better judgments and decisions. Spending
habits can do this to produce annual reports and accounts for administrators' usage and
monitoring purposes.
Importance of accounting department for Camden Ltd is that, they focused on
managerial decisions and strategies. Bookkeeping information is extremely relevant for an
entity's administration or decision making. Without specific information, managers can not agree
to back up their argument. To make a conclusion it needs to be based on real evidence and
figures. Data is vital to decision-making throughout all levels of management. Accounting
records on the overall financial state, like revenue and expenses, allowances and sales, bonds,
assets etc. That's also why in business accounting is extremely necessary. Camden Ltd's
administration depends on critical consideration and the information produced by taking the right
judgment into account (Jetter and Walker, 2017). The key purpose in accounting is to register
financial expenses in the accounting books on a daily basis and to work out the revenue-loss and
financial condition of a company.
Accounting's main roles include evaluation of income & loss and financial status, evaluation
and analysis of reports, records, and accounting process development, collection of numerical
and economic data. It also involves the development of accounting practices and the control of
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