Businesses that want to ensure long-term survival and development opportunities must have internal strength from within. One of the important factors inside the business is to ensure smooth, scientific and reasonable financial and accounting management. So What is accounting and financial management industry? What is the role for businesses? To understand more about this issue, please join Johnson's blog Find out through the content of the article below.
What is accounting and financial management industry in business?
Accounting management is the work of recording, collecting, processing and providing information about the economic and financial performance of an organization or an enterprise.
Corporate financial management is an important tool and work in the financial system of an enterprise. Activities involved in raising capital and using it to invest in assets in the business to generate profits for the owners.
Based on the financial and accounting information of the business that people working in business accounting and financial management factor will manage cash flow and economic situation in the business in order to generate profits for the business.
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What role does accounting management play in a business?
Accounting and financial management It is an indispensable activity in any business organization doing business today. With specific tasks such as:
Timely and complete accounting of all types of assets, equity, liabilities, ... for the business. At the same time, controlling financial income and expenditure activities helps businesses anticipate financial needs, support business planning and financial accounting activities in the business.
Thereby, accounting for arising economic transactions and quickly handling them in a timely, complete and accurate manner ensures good service for all business activities in the enterprise.
The accounting and finance departments also coordinate with related departments to support the business planning and annual financial planning of the company. In addition, accounting and financial management also assumes the role of managing financial investment and lending and debt repayment activities at the enterprise.
The information analyzed by the financial and accounting management department will be further studied before proposing to senior leaders on measures to manage business operations, ensuring good compliance with current regulations and standards. in accordance with the characteristics and business situation of the enterprise to achieve the highest efficiency.
Therefore, the personnel in these two departments are required to have good knowledge and skills to support the business development leadership.
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Staff member of finance and accounting department
Financial management in business includes jobs related to reading financial report, financial planning and management of financial options and specifically the following:
First, read income statement from the accounting department, focusing on recording information in the statement of profit and loss of the business.
Second, read the statements of cash flows, which provides information on how the monetary fund in the business increases or decreases over time.
Third, through Accounting balance sheet will show the profit and loss of the business.
Fourth, strategic planning provides businesses with a financial foundation to help implement projects and plans to the extent allowed.
Finally, manage other financial options such as financial modeling, etc.
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As an accountant, you can work at businesses, organizations or state agencies, etc. Accounting management also has many different names such as accountants or accountants. cost accountingIn general, the work of management accountants includes the following activities:
First, is to monitor and control the financial budgets of the business.
Second, give advice, help businesses choose and book accounting effectively.
Third, accounting management also supports managers to control risks, make budget estimates and support the development of financial strategies in the business.
Finally, support and inform senior leaders before making important financial decisions.
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