Finance for Managers

      1.1 Explain the purpose and requirement for keeping financial records

This paper sets out to clear the basic concepts of financial management and its appliance on the corporate world with the basic sets of accounts prepared while moving up to the end of financial year.   “The financial manager plays a dynamic role in a modern company's development” (JC Van Horne 1980).
Today, external factors have an increasing impact on the financial position of the company. Heightened corporate competition, technological change, volatility in inflation and interest rates, worldwide economic uncertainty, and ethical concerns over certain financial dealings must be dealt with almost everyday basis.
Financial records in the company are [prepared for many different purposes:
  1) To analyse the profit & loss in the fiscal year
  2) To judge the competitor’s market share
  3) To satisfy different   stake owners
  4) For government bodies & Taxation
  5) For claiming back VAT
  6) To assess growth and market competences
  7) Planning strategies
1.2 Analyse techniques for recording financial information in a business organisation 
Preparation of financial accounts of the company and their's interpretation for assessing the financial position of the company in   the market. Lets take the example of company like ONE STOP BEAUTY LTD. (OSB), one of the leading company in cosmetics and perfumeries. This company is running well from last few decades and the only reason is the efficient construction of financial accounts and making the policies in relation to it. Accounts of the company are to be made on the daily basis starting from:
Journal > Ledger > trial balance > cash book > Cash flow statement >Petty cash> cash flow forecasting > final accounts.

OSB creates its daily basis accounts primarily from journals. The daily transactions of business like give , take , credit, cash , etc. all the things...