4.7 The Accounting and Finance function
The Accounting and Finance function is concerned with the following:
- Financial record keeping of transactions involving monetary inflows or outflows.
- Preparing financial statements (the income statement, balance sheet and cash flow statement) for reporting to external parties such as shareholders. The financial statements are also the starting point for calculating any tax due on business profits.
- Payroll administration Paying wages and salaries and maintaining appropriate income tax and national insurance records.
- Preparing management accounting information and analysis to help managers to plan, control and make decisions.