MG408 - Importance of Business Functions: A Tesco Finance Report

This report examines the finance department of Tesco PLC, a British multinational general merchandise and groceries retailer. It highlights the department's role in planning, auditing, organizing, controlling, and accounting for the firm's finances. The report details how Tesco's finance function evolved from a sole trader operation to a department within a large PLC, focusing on management accounting, budgeting, forecasting, cash flow management, and financial statement analysis. It emphasizes the importance of the finance department in maintaining day-to-day records, informing high-level decisions, creating clear financial plans, ensuring fiscal health, and providing financial information for informed decision-making. The report concludes that the finance department is crucial for raising funds, maintaining balance sheets, providing guidelines for fiscal health, setting budgets, and managing costs.

BUSINESS REPORT
GRADUATE CHALLENGE

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
CONCLUSION ...............................................................................................................................4
REFRENCES...................................................................................................................................5

INTRODUCTION
Finance department is consider as a part of the firm that can manages its money. The
function of the finance department includes planning, auditing,organizing as well as controlling
and accounting the fiance of the firm.
Tesco plc is a British Multinational general merchandise and multi groceries retailer. It's
headquarter is in Hetfroshide England ,U.K . Tesco is known as the third largest retailer within
the world. Present report it focuses on the Financial department of Tesco and its importance
within the firm (Haddock-Millar. and Rigby, 2015).
MAIN BODY
The Finance function of Tesco carried through Jack Cohen ,Firm is started as a soletrader. The
role of the finance function is to raise sufficient amount of finance so that it can be helpful to
carry out the business properly. It is also capable of cost as well as price the goods. Tesco is
considered as a larger PLC as its functions are also carried out through department of finance.
Within Tesco Finance department split within two years. That are
Department of management accounting are accountable for finance regarding the future periods
as Tesco plans to set and allocate the budgets. Tesco plan to make the forecast regarding what
must be happen within the upcoming months. They are accountable for the forecast of the cash
flow. Firms also needs to look out regarding that how many goods they need to cover within
their cost. Tesco 's finance department lookout on the cash flow statements and how many profit
they have made and lost and also the balance sheet.
Importance of finance within firm
 With the help of the finance department Tesco can keep its day to day records the
information regarding income statements, cash flow reports and preparing and keeping
the financial statements. Day to day records includes payroll, bookkeeping and balance
sheets regularly (Haddock-Millar. and Rigby, 2015).
 In order to meet the higher lever decisions regarding the financial department. Tesco
needs to finds out that where the firm stands.
 The finance department of Tesco also accountable for the making the clear plan such as
it must be clear to provide the guidelines that how the funds will be spent.
 The finance department of Tesco is also crucial for the fiscal Health as it is vital to have
the balances and checks within places to verify the accuracy regarding its work.

 The Major role of the finance department of Tesco is to provide the suitable financial
information focuses to communicate the information to the decision makes so that they
have the informed judgments as well as decisions.
CONCLUSION
From the above information it is summarized that fiance department of Tesco is crucial
as it helps the firms to raise its funds,maintain balance sheet. It is also accountable for the
making the clear plan and provide the guidelines for the fiscal Health. It is suitable for the
financial information that focused so that the informed decisions as well as judgements taken by
the firm. Furthermore it also focused on to set and allocate the budgets. It also focused that how
many goods can cover their cost and many more.

REFRENCES
Books and Journals
Haddock-Millar, J. and Rigby, C., 2015. Business Strategy and the Environment: Tesco PLC’s
Declining Financial Performance and Underlying Issues. Review of Business & Finance
Studies.6(3). pp.91-103.