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 Post subject: accounting
PostPosted: Tue Jun 17, 2008 1:39 pm 
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What role do you see accounting playing in business operations?
How dependent do you think a business is on its accounting department? :?: :|


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PostPosted: Wed Jun 18, 2008 10:54 pm 
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Jbramble:

The role of an accounting department is to perceive and interpret financial reality for a company. It does this through the creation of financial statements -- balance sheet, income statement, cash flow statement, etc.

A balance sheet looks at what you owe compared to you have and others owe you at a moment time.

An income statement sets expenses against revenue to see if you can make a profit over a period of time.

A cash flow statement confirms how cash moves in and out of a business.

Without this information a company's management would have great difficulty knowing what are the best actions to take. For example, if a restaurant did not have an income statement, it would be difficult to know what menu items are the most profitable.

So to answer your questions Jbramble, accounting plays a huge role in business operations by giving the business a guide to its financial/business decisions. And as a result, a business is absolutely dependent on the direction that an accounting department provides. Any business without this kind of direction will not be around for long.


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PostPosted: Thu Jun 19, 2008 12:03 am 
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The role/value of an accounting department to a business is directly proportionate to the value of the information supplied to its clients (business owners). There are two major components to an accounting department - data entry and reporting. The second will define how critical the accounting department is to an organization - in some cases "do or die".


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PostPosted: Wed Jul 02, 2008 1:43 am 
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Quote:
The role of an accounting department is to perceive and interpret financial reality for a company



Hi All

I am new here. Just joined the forum.

IMHO accounting department should not be restricted to playing the role of preparing and reporting, but to get involved in setting and providing advice on the company's financial strategy.


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