An organization is made by the collection of many departments that help the owner to run it. It may include monetary and non-monetary activities that help the organization to climb up the corporate ladder, in turn, achieving major success and reaching the final goal. In order to achieve market leadership, an organization is required to have a smooth flow of activities, so that there is clear transparency in the business. As it cannot be done together, the organization has been divided into several department to handle various activities regarding the business. One such department can be named as the accounting department where all financial activities of the company are handled. Therefore, it is considered to be of high importance to the organization. Here are some of the reasons why it is considered so important.
Keeping up with the law
Being ethical and keeping up with the law is one of the most important conditions of any company. The minute a business has been accused of fraudulent activities is when it loses the reputation as a good provider or service to its customers. Therefore, ensuring that your business does not come to this point is the job of the department in focus on this topic. It is through them that you will be able to discover what can and cannot be done in terms of money and other accounting standards.
Whatever business that you may be engaged, making a budget for every year is considered mandatory. Therefore, foreign company incorporation in Singapore or local, one of the first steps should be is to how to handle the money of the business for the coming accounting year. This includes, allocating portions of the budget to various business activities and dividing them accordingly to each department. This is solely the job of an accounting department as it directly affects the money of the business.
Although this activity may not sound like that of the bookkeeping services job, it most certainly is a part of the accounting department. The primary reason for the above statement is because, with the monetary and financial data of the company, it will be much easier to analyse the achievements of the business throughout the years. Once that has been done, comparison too could be made with older records in the accounting department for performance evaluation of the organization.
Once again, strategy development too is based on historical data along with present data. In order to develop future strategies that will affect the business in a positive manner, it is important to evaluate the financial data of a company, which simply means that this too is a job of the accounting department.
Due to such responsibilities held by this very department, it is considered to be one of the most important in any organization.