The finance department consists of many different roles, most of which are critical to the smooth running of any company. Its main job is to provide the financing and accounting information which is needed to make various decisions within the company. The main areas in a finance department include:-
Book keeping – Financial transactions were recorded by hand into thick books called ledgers. Now these records are usually kept on a computer. Creating balance sheets and profit and loss accounts – At the end of each financial year, statements are required to be produced. Trial balances are taken from the ledger entries and are used to create a balance Sheet which shows the assets and liabilities of the business at the year end. Records of purchase and sales are also totalled up to create a Profit and Loss account. Providing management information – On-going financial information is required by managers to enable them to make better decisions in regards to their business.
They are then able to decide if it is worthwhile to switch to making an alternative product. Wages – This section is responsible for the payment of all wages and salaries of employees. The wages section also organises collection of income tax and national insurance for the Inland Revenue. Raising of finance – The finance department are also responsible for the way in which a company raises finance, for example through loans and what the repayment of interest is on that finance. The finance department will also supervise the payment of dividends to shareholders.
Marketing is critical for growth of a business and its central role is in creating, communicating, capturing and sustaining value for an organisation. Marketing helps a firm in creating value by better understanding the needs of its customers and providing them with innovative products and services. This value is communicated through a variety of channels as well as through the firm’s branding strategy. Effective management of customers and pricing allows the firm to capture part of the value it has created. Finally, by building an effective customer-centric organisation a firm attempts to sustain value over time.
Manufacturing is the production of goods for use or sale using labour and machines, tools, chemical and biological processing, or formulation. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale. Such finished goods may be used for manufacturing other, more complex products, such as aircraft, household appliances or automobiles, or sold to wholesalers, who in turn sell them to retailers, who then sell them to end users – the “consumers”. Manufacturing takes turns under all types of economic systems. In a free market economy, manufacturing is usually directed toward the mass production of products for sale to consumers at a profit. In a collectivist economy, manufacturing is more frequently directed by the state to supply a centrally planned economy. In mixed market economies, manufacturing occurs under some degree of government regulation. Modern manufacturing includes all intermediate processes required for the production and integration of a product’s components. Some industries, such as semiconductor and steel manufacturers use the term fabrication instead.
“Human resources” (HR) is a term that is used in business to refer to the people who work for a company or organisation. It also is used to refer to the department of a company that is responsible for managing those resources, such as hiring, firing and training new employees and overseeing the benefits and compensation packages provided to all of the company’s employees.
The people who make up a company’s workforce — its human resources — are considered to be an asset to the company, just like its financial resources and material resources, such as buildings, machinery and other equipment. A company is more likely to be successful if it manages its entire resources well, including its people. This is why many companies have human resources departments, even though those departments do not directly contribute to the company’s production, services, sales or profits. Rather, effective HR departments allow and encourage the companies’ employees to do their best, which in turn contributes to the success of those companies.
Business administration is the process of managing a business or non-profit organisation so that it remains stable and continues to grow. This consists of a number of areas, ranging from operations to management. There are many different roles related to business administration, including business support, office manager, and Chief Executive Officer (CEO), among others. Most companies have a dedicated group of administrators.
The main areas incorporated into business administration are operations, logistics, marketing, economics, Human Resources (HR), and management. An administrator oversees these parts of an organisation to make sure that they’re all functioning properly and efficiently individually, and that they’re all working together to make the business profitable. He or she may also come up with ways to make the department more profitable, and often delegates tasks to employees in the department. Large companies usually have at least one administrator assigned to each area.
Most companies have a range of administrative roles in different parts of their corporate hierarchy. At the office level, there are business support officers, who might develop and maintain an office database, oversee other employees for projects, and help the manager with analysing performance trends. At the next level there are office managers, who oversee an entire office, make budgets and analyses of staff performance, design procedures, and assign projects, among other things. If an organization is large, it may have several assistant managers to help the overall office manager.
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