Accounting and Finance Administration

Question: Discuss about theAccounting and Finance Administration. Answer: Introduction The management team of an organization is entrusted with the work of making sure that the organization grows and becomes successful in the industry. The various agencies have different company structures that define how the organization will be managed and the channel of decision making. The structure is made based on the importance of the department and the role the person plays in the firm. Among the five most important departments in any organization is the finance and accounting department that is organized by the chief finance officer (CFO). The dynamism of work of this department changes according to the type of industry. The paper, therefore, identifies the importance of accounting as well as the role played by the finance manager in a firm. The article will specifically concentrate on the five-star hotel in the hospitality industry. To understand the nature of accounting, one has to understand the basic accounting principles and how the accounting department works. According to Wilson (2012, p. 343), the accounting department is composed of different personnel ranging from the Chief Finance Officer to the clerks. The author further adds that the sections are charged with the responsibility of analysing the receivables payrolls and asset ledgers of the firm. Stubbs and Higgins (2014, p. 1023) established that in recording and reporting of the transactions, the core accounting principles must be considered. These aspects include: accrual concept, going concern concept, materiality concept and the matching concept among others Moreover, Hiebl, (2012, p. 607) asserts that accounting in an organization is divided into two; Management accounting and financial accounting. Management accounting as a branch of accounting is tailor made to fit the requirements of different managers in the departments. Stubbs and Higgins (2014, p.1023) noted that the records provided subsequently help the CFO to make informed and accurate decisions. Financial accounting on the other hand furnishes the financial information to the both the internal and the external stakeholders of the firm. Ram and Tagg (2014, p. 663) argues that the accounting department also prepares and publishes annual financial reports such as the income statement, the statement of cash flow and the balance sheet. Remarkably, these documents give a summary of the past performance of the firm and also indicate the present financial health of the organization. The department ensures that the summarized reports are easier to interpret, a function that is conducted by the CFO. Laws, Letelier and Karl (2014, p. 567) concluded that the chief finance officer is not only bound by the international accounting standards but also by the specific legislative responsibilities of the organization. The responsibilities of a CFO can be broadly categorized into three main areas; organization, individual and the role itself (Hiebl 2012, p. 633). From firms perspective, the finance manager must have sound managements skills and market analysis techniques. Wilson (2016, p.503) asserts that the CFO is a team leader and ensures that every person in the group implements the prospected strategies. The finance manager is also a critical decision-maker on all material issue affects the performance of the firm. It is for this reason that Laws, Letelier and Karl (2014, p. 595) concluded that these impacts create opportunities to the institution that is usually in alignment with the companys financial strategy. As such, proper choices made by the CFO helps in the reduction of risks that a company faces in the market. Besides, the manager assesses the revenue that the organization prospects for use in international expansion. Griffin and Wright (2015, p.453) reiterated that the CFO is responsible for leading promotion and delivery of the organizations finances that translates to transparency and trust to the guests. The investment manager also plans on the identification and purchase of assets from different suppliers and hence improving the number of consumers to the business (Wilson 2016, p.601). On an individual basis, the finance manager has a role in laying down the financial strategy with the help of the other departmental officers (Ram and Tagg 2014, p. 581). Moreover, the CFO leads in the annual budgeting process that helps promotes balance in the investment and expenditure. Specifically, the fiscal administrator in the hospitality industry builds a robust relationship with different organizations in the area to promote ethical interaction in the market. Understanding accounting on an individual level helps a person learn how to plan and to manage their finances. The principle of accounting contributes to nature a person to be creative and efficient in business as well as administration of different investments. It is through accounting that firms can monitor the trends in the market and the impact of an occurrence to the market. Therefore, these aspects indicate that a CFO assesses the companys budget, unites the personnel, and initiate policies designed to improve the number of consumers associated with the firm. References Griffin, P.A. and Wright, A.M., 2015. Commentaries on Big Data's importance for accounting and auditing. Accounting Horizons, 29(2), pp.377-379. Hiebl, M.R., 2012. Peculiarities of financial management in family firms. The International Business Economics Research Journal (Online), 11(3), p.315. Laws, E.A., Letelier, R.M. and Karl, D.M., 2014. Estimating the compensation irradiance in the ocean: The importance of accounting for non-photosynthetic uptake of inorganic carbon. Deep Sea Research Part I: Oceanographic Research Papers, 93, pp.35-40. Ram, J., Wu, M.L. and Tagg, R., 2014. Competitive advantage from ERP projects: Examining the role of key implementation drivers. International Journal of Project Management, 32(4), pp.663-675. Stubbs, W. and Higgins, C., 2014. Integrated Reporting and internal mechanisms of change. Accounting, Auditing Accountability Journal, 27(7), pp.1068-1089. Wilson, N., 2016. ESOPs: their role in corporate finance and performance. Springer.