Importance of Accounting and Finance Function in Financial Decision Making

FINANCIAL DECISION-
MAKING

EXECUTIVE SUMMARY
Financial decision is counted under one of the major decision that is associated with the
company. An investor have to determine various factor before taking any financial decision
including investment decision in the company. This means that if the financial condition and
performance of the company is not good then no investor would be ready to have an investment
in the company. And this financial performance can be measured and controlled by the
accounting and finance department of the company. These department records, prepare and make
the availability of finance in the company. This report will discuss the concept, importance, roles
and duties of accounts and finance department within the company. Calculation and analysis-on
of the ratios are also being included in this report supported by the investment decision-making
concept.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK-1 IMPORTANCE OF ACCOUNTING AND FINANCE FUNCTION..............................4
Accounting department................................................................................................................4
Finance department......................................................................................................................6
TASK-2 CALCULATION OF RATIOS AND ITS ANALYSIS...................................................8
Calculation of ratio......................................................................................................................8
Analysis of ratio...........................................................................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
SKANSA PLC is one of the largest construction company of the world. It started its
business in 1984 in UK. The company provides the services of construction to its clients
whereby it handles big construction projects. The number of employees are around 34000 in
2019. The annual sales revenue of SKANSA PLC is £4800 in 2018, while in 2019 it raises to
£6000.
SWOT analysis of SKANSA PLC:
Strength: Global reputation, Focussed R&D, Strong order books.
Weakness: Less efficiency in establishment in developing market. Working towards the
improvement of operating margin.
Opportunities: High growth in USA and UK and raising the trend of urbanization will offer
many future opportunities.
Threat: Uncertainty due to changing trends and due to Brexit. Raising competition.
TASK-1 IMPORTANCE OF ACCOUNTING AND FINANCE FUNCTION
Accounting department
It is one of the important department and function of every company including SKANSA
PLC. This department is responsible for recording the accounting transaction and preparing of
financial statement. This department enable the company to have a measure over its growth and
performance. Since, financial statements are the depiction of the financial condition of the
company so it would not be wrong to said that this department shows the true reflection of the
company financial performance. Like other company SKANSA PLC also aims at raising its sales
and revenue percentage so an analysation of these goals that whether it is achieved or not is to be
depicted by accounting department of the company.
This department perform various functions in the SKANSA PLC. These functions broadly
includes:
Financial accounting:
This is the main function of accounting department that it maintain and record the
financial transaction and perform the financial accounting function. As per this function financial
transactions are being prepared by the company. It includes the preparation of income statement.,