Financial decision making is referred to as an effective process which is responsible for taking strategic decisions related with the stockholder's equity and liabilities of the organization. Financial decision making is very crucial for the sustainable growth and productivity of the company for a longer period. Financial functions consists of taking strategic decision related with the financial reporting, planning, controlling and monitoring. The key role of accounting is to focus on immediately managing the financial issues on a timely and systematic manner. The key function of accounting is to control cost, prepare budget, prevention of errors, preparation of financial statements, etc. Finance function is very crucial because it helps in determining the inflow and outflow of cash. The finance function can be categorized into long term, medium term and short term finance of the company. The financial function is very crucial as it helps in effectively identifying the needs and sources of the finance and make various investment decision to ensure there is enough fund in order to carry out op
ALPHA limited company is a UK based manufacturing company which was founded in the year 1954. The company aids to focus on expanding its operations in the various parts of the UK. ALPHA limited company integrates with effective management accounting techniques in order to perform efficiently. It makes various financial statement in order to make various financial, operating and investment decision regarding business.
Financial decision making is referred to as an effective process which is responsible for taking strategic decisions related with the stockholder's equity and liabilities of the organization. The key purpose of accounting is to effectively provide the financial information of the company to the stakeholders in order to make strategic decision. Accounting is very useful in analysing and summarizing the activities of the ALPHA limited company which in turn is very useful in evaluating the financial position of the company in a systematic and efficient manner (Nyathi and et.al., 2018). Accounting is useful in effectively keeping track of the income and expenditures by strategically complying with various financial information and make informed decision. Accounting is useful in recording all the financial transactions in financial statements of the company. It is useful in preparation of budget and reducing cost. Accounting helps in determining the fraud and error in the financial activities of the business.
Management of finance helps in carrying out all the activities in a systematic and appropriate manner (Alfraih, Alanezi and Alanzi, 2015). Finance is an effective function as it is responsible for managing funds within the organization. It helps in planning and budget plan in order to control the expenses and expenditures of the company. It is very useful in controlling cost of the company and attain economies of scale. This in turn helps in improving the financial position and strength of the ALPHA company. The key role of finance is to manage cash flow of the business. It is also very crucial in planning profits and controlling cost of the business effectively. It helps in managing unavoidable risk of the business and take necessary measures to analyse the potential risk in the market. Finance function is very crucial in the or organization as it is useful in analysing the present and forecasting the future (Bebbington and Unerman, 2018). It is very crucial for the organization to do financial analysis in order to function in a systematic and efficient manner. The key role of financial management is to take financial decisions and exercise control on the finances of the business with the help of benchmarking, key performance indicator, financial forecasting, profit and loss analysis, ratio analysis, etc. It is also very useful in financial planning and capital budgeting by effectively analysing the capital required by the organization and also evaluating the source of funds in order to fulfil the capital needs of the ALPHA limited company. The key role of finance is to make strategic decision related with the investment, dividend, financing and liquidity for smooth ad sustainable growth of the business (Lee and Lee, 2015).
Management accounting techniques is useful for planning, monitoring and controlling the activities of the management in the organization. Management accounting techniques is very crucial as it helps in financial planning, financial statement analysis, budgetary control, cash flow analysis, marginal costing, etc.
Financial planning: The key role of management accounting is to maximize the profits of the business through making sound financial decision making (Osadchy and et.al., 2018). Financial planning is useful in attaining the goals and objectives of the company.
Financial statement analysis: It is very crucial in determining the financial position of the company and also critically examine the growth rate of the ALPHA limited company.
Budgetary control: It helps in setting budget for the particular set period. It helps in setting a base for the future. It helps management of the organization to set budget by evaluating the historical information and forecast the budget required for the future op