What is ‘Accounting and Finance’?

Accounting and Finance covers many areas including bookkeeping, credit control, accounting  cashflow and profitability.  The aim of effective accounting and finance is to ensure that the profitability and cashflow of the business are managed successfully. The business should always be aware of its current trading ability; whether it is profitable and whether it will have sufficient cash to pay its bills when they come due. Monthly management accounts consisting of a Profit & Loss Statement and a Balance Sheet, produced every month is one of the major functions of an accounting department along with cash flow projections and cost analysis.

What issues/challenges typically arise in the finance area for a business?

• Managing all financial paperwork so that it is processed in a timely manner;
• Ensuring that only costs approved by and required by the business are ordered and paid for;
• Filing all paperwork that allows for the quick and easy retrieval when it is needed;
• Producing monthly management accounts that are accurate and timely;
• Managing cashflow for the business;
• Monitoring overheads and costs;
• Managing credit given to customers;
• Providing financial information to other stakeholders such as the bank, shareholders and other entities with an interest in the trading performance of the business; and
• Managing payments to suppliers.

What structures or procedures are required in running an Accounts Department?

• Accounting Procedures
• Bookkeeping procedures
• Administration Procedures

Depending on the size of the business, some or all the staff listed below with suitable experience

• Administration person
• Data entry person
• Bookkeeper
• Accounting Technician
• Accountant
• Credit Controller