Importance of Teamwork and Financial Management in Business

This report discusses the importance of teamwork and financial management in business. It explains how teamwork contributes to efficient communication in different departments and highlights the significance of financial management in planning, organizing, and controlling financial activities. The report also explores the purpose of financial reporting and the important documents used in reporting.

Introduction to Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Importance of team work for an organization.............................................................................3
2 Financial Management and its importance...............................................................................4
3 Financial reporting and important documents................................................................5
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Financial management can be understood as an important tool used by an organization to
determine the financial requirements of the business. In this report teamwork is explained and
the importance of it and how it contributes for good efficient communication in different
departments. In this report Marks and Spencer has been taken as the company whose financial
reports Balance sheet and P&L have been explained and the purpose of these financial reports
with the importance for an organization is explained.
MAIN BODY
Importance of team work for an organization.
Teamwork in management can be understood as a collaborative effort of group members
to achieve a goal or to complete the tasks in most effective manner It is ac crucial part of
business In company as it is often necessary for the colleagues in company to work together and
contribute their skills to reach the company goals.
Importance of teamwork:
 The importance of team work can be understood as it contributes to brainstorming which
is a good opportunity for the team members to exchange their ideas and enhance their
creative problem solving skills (Gonzalez and Melo, 2019). Team members are able to
create trust and commitment between them as there are open accessible lines of
communication. They are adaptive to changing conditions in organization and also
develop diversity in their capabilities.
 In a strong team, members are able to boost their creativity and confidence levels as they
get equal share of participation in all activities. The importance of teamwork can be
understood as a strong teamwork environment promotes an atmosphere of loyalty and
friendliness in employees. It motivates the employees and align them to work harder,
cooperate and effectively contribute to the production targets.
Importance in departments: There is efficient flow of communication between different
departments when the team members are accurately working with trust and proper functionality
between them.
Marketing and finance: The marketing department in company has a vital role in bringing
innovative technology in products and establishing strong marketing strategies to reach the
targeted customers. There should be proper communication of market research results involving

price, technology and other factors important for company done by the marketing department to
the finance department (Hourani, 2019). Finance department keeps a check on financial
resources of company, money used to develop the assets in company and how to maintain the
profit margins along the growth in marketplace. Proper communication in both departments of
M&S with accountable team members helps the company to foster growth.
HR and finance: The human resource department and finance department should be able to
work together by sharing the information regarding training and development of new workforce,
recruitments and selection procedures. The finance department should analyse the resources used
in various training procedures for the Human resource in company. Proper communication in
both departments of M& enhance productivity targets and performance of company.
Marketing and Human resource: The marketing and human resource departments enable
company to employee highly skilled workforce competitive to other companies. HR department
helps to research the competitive skill's workforce requires which needs to be shared with
marketing department so proper and effective marketing team can be developed. Proper
communication in both departments of M&S enhances the proper use of finance.
2 Financial Management and its importance
Financial management can be understood as planning, organizing and controlling the
financial activities such as the procurement and utilization of funds in an organization. It is
connected with analysing money procured in company and all the investment decision taken in
business of the company. The goal of financial management can be understood as creating profit
and ensuring an acceptable return on investment. Company aims to achieve through business
financial plans, setting up financial controls and financial decision-making. There three major
decisions taken in financial management.
 Investment decision-It relates to decisions made by investors or the top management with
respect to amount of investment to be deployed in the investment opportunities for the
company.
 Financing decision- The financial decisions taken by the management are related with
liabilities and stock holders' equity of the company as well as the issuance of bonds to
increase the company market share.

 Dividend policy decision- The dividend decision is one of the most crucial decision made
by the finance manager relating to the pay-outs to the shareholders. The pay-out is the
earning per share given to the shareholders in the form of dividends.
Importance of Financial Management:
 For explaining importance of financial management in management Marks and Spencer
has been taken as the organisation. Marks and Spencer is one of the top most British
multinational retailer that specializes in selling high quality fashionable clothing, home
décor products and food products (Robinson, 2020).The brand aims to provide a standard
against which its competitors may be measured, from customer service to care of the
environment and community. The objective of company is to build sustainable business
through consistent profit and growth in the market share reach and keeping accountability
towards shareholders and wider stakeholders.
 It operates in the retail industry which is highly competitive and evolving as per the
changing preferences in customers taste and demands. The financial management has an
immense importance for the company as decisions related to the financial analysis help in
resource allocation decisions of the company. The company focuses on keeping a track
on all financial ratios affecting the business, its market share and the cash flow. M&S
financial management importance can be understood as it has good profitability ratios
which are Return on assets (ROA), Return on equity and the gross profit margin ratio.
 The financial statement analysis is important as it provides meaningful information to the
shareholders in taking decisions related to the investments in company share and how
much they see their return with growth of company. M&S lays immense importance to
the financial statements of company, profitability targets and the shareholders decisions
as they help financial managers in assessing operational efficiency and implementing
important steps regarding financial working of company.
3 Financial reporting and important documents
A financial report is the summary of financial performance of a company that reports the
financial health of a company helping various investors and stakeholders take their investment de
scions. The ratio analysis in the reports about the working of company has an important role in
determining the financial strengths and weaknesses of company relative to other companies I the

same industry (Schroeder, Clark and Cathey, 2019.)The reports also reveal whether the
company's financial position has been improving or deteriorating over the years. Financial
reporting is important and an integral part of Accounting and Reporting system in an
organization as it involves the financial disclosure of the position of company, its performance
over years and the strategies adopted by finance mangers to improve the reports. M&S financial
reports have been able to show an effective financial image about the operational efficiency in
company, its ratios and how it has been able to retain the trust of various shareholders and
stakeholders in market with great accountability towards them.
Purpose of reporting:
 The financial reports of company provide information to the management regarding the
production levels, sales and the benchmarks set by organization. The financial mangers
are able to take decisions according to the analysis of report for effective growth and
completion of targets.
 To provide information to shareholders, stakeholders and investors regarding the
financial growth and performance of company so it enables them in analysing the
performance and de scions.
 To provide information about the economic resources of company and their usage in
company and it forms the backbone for financial planning, analysis, benchmarking their
decision-making (Sinra, 2018).
The documents used by company mostly for reporting purposes are Balance sheet and Profit and
Loss account
Balance sheet- M&S document their financial performance through Balance sheet. A balance
sheet is a financial statement that reports a company's assets, liabilities and shareholders’ equity
at a specific point in time, and provides a basis for computing rates of return and evaluating its
capital structure (Marks and Spencer group ,2018).The purpose of balance sheet is to reveal the
financial status of a business as of at specific time. The statement shows what an entity owns
(assets) and how much it owes (liabilities) as well as the amount invested by the company
(equity). It gives the interested investors an idea about the financial position of company in
addition to displaying what the country owns and owes.

Figure 1M&S Balance Sheet
Profit and Loss – M&S use profit and loss statement as an important tool for reporting their
financial performance, it summarizes their revenues, costs and expenses incurred during the
financial year (Marks and Spencer group,2019).This provides about a company's ability or
inability to generate profit by increasing value and reducing the costs and how much consumer
satisfaction it posses in the economy. Profit and loss accounts shows the total income and
expenses of company, its profit margins of sales and percentage of loss in sales if any. It helps
company to analyse various ratios helpful for increasing the operational efficiency targets.
P&L Account example:

CONCLUSION
In this report meaning of team work and its importance in management of an organization
is explained. This report analyses how departments in company work together by sharing
information and effective communication. The importance of financial management in an
organization is explained and M&S has been taken for understanding. This report also explains
the meaning of financial reporting and its purpose in the company. It is concluded in this report
that financial reports in form of balance sheet and Profit and Loss statement are used to report
the financial performance.

REFERENCES
Books and Journals
Gonzalez, R. V. D. and Melo, T. M 2019. Analyzing dynamic capability in teamwork. Journal of
Knowledge Management.
Hourani, N., 2019. The Impact of Human Resources Development Mechanisms on Building
Teamwork. Journal of Business and Retail Management Research . 13(4).
Robinson, T. R 2020. International financial statement analysis. John Wiley & Sons.
Schroeder, R. G. Clark, M. W. and Cathey, J. M , 2019. Financial accounting theory and
analysis: text and cases. John Wiley & Sons.
Online
Annual Balance sheet. 2018. [Online]. Available Through: <
https://in.investing.com/equities/marks---spencer-group-balance-sheet >.
Sinra, 2018. Statement of Financial Reporting.[Online]. Available through:
<https://www.wikiaccounting.com/balance-sheet-ultimate-guide/>.