Finance Flashcards
1
Q
what’s the role of the finance department?
A
- to control cost and expenses - avoid financial problems.
- to monitor cash flow into and out of the business - enough cash to pay suppliers and wages. profit and good cash flow are very different things.
- forecast the future - preparing budgets can identify future grands. possible problems can be planned for in advance.
- monitor performance
- to provide info about decision making - financial influence on decisions
2
Q
what’s the limitations of the role of the finance department?
A
- not all decision can be made based on how profitable a business is.
- financial information is based on past events so isn’t usually up to date.
- financial information doesn’t reveal informations on how staff are motivated or external factors or how success the business has been in increasing market share or customer satisfaction