Introduction
Leaders and decision-makers in business organizations should introduce and support effective accounting and financial practices if they want their processes to remain sustainable, meet the demands of key stakeholders, and prevent possible challenges. All key departments, procedures, and overall models should be in tandem with these initiatives. The purpose of this paper is to explore a number of areas and attributes of an organization that proper accounting and financial strategies support in companies.
ETH501 and Organizational Performance
Many companies develop and support finance and accounting departments that work synergistically with other units to deliver the intended results. Those involved are required to engage in desirable practices that can improve an organization’s ethical status. Professionals in these two fields work in accordance with outlined code of ethics that inform their practices, procedures, and goals (Glaeser & Poterba, 2021). Some laws also exist that accounting professionals need to follow whenever completing their tasks. Ethical conduct is also needed whenever accountants and financial experts are liaising with workers from other companies. Consequently, these fields encourage employees to avoid actions that have the potential to affect future performance. Sivasubramaniam (2020) observed that improper practices discouraged investors and other stakeholders from doing business with the affected company. Proper financial and accounting procedures maximize the confidence levels of all individuals. This achievement will set the stage for attracting more potential customers and promoting superior strategies that can improve service delivery.
When unethical behaviors and practices in financial and accounting processes emerge, companies tend to lose their reputations. High levels of misconduct would attract criminal prosecutions in accordance with the established standards (Ameen et al., 2018). The case of Enron Corporation reveals that improper accounting practices characterized by dishonesty can even result in the collapse of the biggest enterprises. Ameen et al. (2018) use this understanding to discourage professionals from engaging in insider trading, having stakeholder interests, or financing campaigns. Failure to consider these suggestions can eventually make any company unsustainable or obsolete.
MGT501 and Strategic Financial Performance
In stable corporations, accounting and finance departments need to work synergistically with other units to deliver desirable results, such as the human resources (HR). Sivasubramaniam (2020) indicates that the HR function is responsible for recruiting and hiring competent individuals who can help improve performance. The involved manager will get the right people for financial and accounting tasks. The HR department should also have a proper understanding of financial procedures because the ultimate aim is to improve organizational performance. Ameen et al. (2018) argues that the two functions are expected to cooperate and consider proper strategies to deliver profits. The units need to communicate with each other continuously, solve some of the recorded problems, and identify better strategies for empowering employees.
The accounting and financial practices will allocate the required resources and support to the HR department. The company will be empowered to identify and employ the right people while ensuring that they get competitive remunerations (Ameen et al., 2018). The finance and accounting units will determine when the HR can consider increasing remunerations depending on the recorded profits. The finance department will ensure that a stable balance between revenues and costs is maintained (Sivasubramaniam, 2020). Additionally, the HR and finance managers will work collaboratively to develop proper training and career advancement programs for accountants depending on the emerging organizational needs. The HR department will also be required to promote the wellbeing of all workers, including those in the accounting and finance units.
BUS520 and Strategic Financial Performance
Business intelligence and data analytics is a core function in businesses aimed at tapping, organizing, and relying on data from diverse sources within the firm to get timely insights. The real time practice aids in decision-making and governance strategy (Glaeser & Poterba, 2021). Accountants in a given company are required to apply data analytical systems to observe valuable insights and make inferences from the recorded financial trends. This practice helps them identify key areas for improve, thereby improving the organization’s efficiency (Wise Marketer Staff, 2021). The finance function can rely on data analytics and artificial intelligence to identify possible risks and mitigate them. These procedures will improve the overall health and performance of the company.
Organizations have key clients with diverse expectations. The accounting function can analyze financial documents and use data science technology to improve their processes. They can also gather insights from customers’ needs and propose superior ways for improving service delivery (Glaeser & Poterba, 2021). These efforts informed by data analytics can help improve service delivery and guide the marketing and sales departments to offer personalized services. Additionally, Ameen et al. (2018) suggest that data analytics are capable of helping financial experts to identify new ways for reducing costs, increasing the level of efficiency, and promoting sustainable business practices. Those involved in data analytics and business intelligence would have to collaborate with financial departments to collect financial information, thereby being in a position to make timely decisions.
BUS530 and Strategic Financial Performance
Economic analysis revolves around the interpretation of some of the conditions recorded in a given business firm. In successful corporations, managers are expected to engage in such a practice to maximize outputs and improve delivery of services or goods. The model also promotes efficiency while limiting constraints. Glaeser and Poterba (2021) indicate that the process of economic analysis will help companies learn more about issues to do with machinery and labor needs. They will also monitor the tariffs, interest rates, and innovations capable of affecting the business model (Wise Marketer Staff, 2021). These economic analysts will need to liaise with accounting and finance functions to collect the relevant data or information that can aid their practices.
The analyst can request additional funds from the department to pursue some of the analyses. The end result is that the specific company will reshape its model in accordance with the economic attributes existing externally and internally (Glaeser & Poterba, 2021). The emerging financial plan would eventually be informed by the findings of the completed economic analysis. This outcome indicates that there is a need for these two functions to interact if desirable results are to be recorded (Wise Marketer Staff, 2021). The process of economic analysis can help companies to identify areas of improvement, units that require additional resources, and inputs that could improve efficiency. These core functions would be possible if the finance unit is involved and ready to offer the relevant funds.
MKT501 and Strategic Financial Performance
The accounting and finance function compiles financial documents that offer a detailed outlook and analysis of a company’s performance. The emerging files will assist key departments to make managerial decisions in accordance with the recorded losses or profits (Sihag & Rijsdijk, 2019). The marketing department will be required to liaise with the finance unit to learn more about the strengths and areas that would need some form of improvement. This knowledge will guide the professionals to create better strategies for maximizing sales. Asikogu et al. (2021) indicates that the emerging insights will guide the marketing team to consider additional advertisements and promotions. The finance and accounting functions would identify such requirements and budget for the same. This synergistic approach will ensure that a commercial vision exists aimed at maximizing organizational profitability.
The finance function can tack the level of sales and the emerging profits. They will offer additional insights to the marketing department that can help the relevant professionals to make the necessary improvements. Glaeser and Poterba (2021) argue that the finance department would support procurement of the relevant resources for the marketing unit depending on the anticipated sales targets. This model creates room for improving organizational health and ensuring that proper marketing strategies are in place (Sihag & Rijsdijk, 2019). Any finance unit that offers proper support to the marketing function will make the specific company profitable and sustainable.
Overall Accounting and Finance Strategy
Businesses tend to have several functional areas that work synergistically to pursue organizational mission and vision. Sihag and Rijsdijk (2019) support the notion that a positive working relation between finance and accounting departments with other units can help companies achieve their goals much faster. Asikogu et al. (2021) indicate that accounting practices makes it possible for the finance unit to tack recorded profits, losses, and expenditures. The legal team will liaise with these functions to ensure that the company complies with statutory and ethical standards (Sihag & Rijsdijk, 2019). The managerial unit will identify the emerging figures from the accounting department and make the relevant decisions. The acquired financial data will make it possible for the research and development team to acquire some of the relevant resources or equipment (Wise Marketer Staff, 2021). Proper decisions would emerge that can guide other procedures and eventually make the company successful.
When proper relationships exist, all departments will focus on the wider picture and engage in actions that resonate with the wider organizational objectives. The HR department will seek the relevant resources from the finance function and hire the right people to occupy all key positions in other departments (Asikogu et al., 2021). The emerging sense of cooperation will promote decision-making procedures, allow units to pursue common goals, and find superior mechanisms for addressing emerging obstacles. Sivasubramaniam (2020) asserts that a health relationship among all functions increases chances of unearthing and resolving unethical practices that have the potential to disorient organizational performance. When the working relationships among these core functions weaken, chances are usually high that the affected company will encounter various dysfunctions, such as poor decision-making and inability to implement change effectively.
Conclusion
The finance and accounting function in any given company performs numerous tasks that showcase the recorded financial health, thereby allowing other departments to pursue their goals. A healthy working relationship is always necessary between this unit and all the other areas to ensure timely decision-making, acquisition of resources, promotion of ethical procedures, and delivery of organizational results. In conclusion, failure to have proper interactions among functional areas will make the affected company dysfunctional and increase its chances of becoming obstacle in its sector.
References
Ameen, A. M., Ahmed, M. F., & Abd Hafez, M. A. (2018). The impact of management accounting and how it can be implemented into the organizational culture. Dutch Journal of Finance and Management, 2(1), 2-10. Web.
Asikogu, C., MIthiria, E. N., & Omurwa, J. K., (2021). Management accounting techniques and firm performance of major construction companies in Nigeria.Journal of Finance and Accounting, 5(3), 73-93. Web.
Glaeser, E. L., & Poterba, J. M. (2021). Economic analysis and infrastructure investment. University of Chicago Press.
Sihag, V., & Rijsdijk, S. A. (2019). Organizational controls and performance outcomes: A meta-analytic assessment and extension. Journal of Management Studies, 56(1), 91-133. Web.
Sivasubramaniam, S. (2020). Accounting practices and organizational performance: Evidence from small and medium scale enterprises in Sri Lanka. Indian Journal of Finance and Banking 4(1), 69-75. Web.
Wise Marketer Staff. (2021). Marketing and accounting: An essential partnership for business success. The Wise Marketer.