Introduction
Keeping the corporate environment aligned with the principal tenets of workplace ethics is vital for any company. The extent of employees’ and managers’ compliance with the established code of ethics depends on a variety of factors, with accounting and finance being vital components (Melé et al., 2017). By building an ethical system where the principles of accountability, reporting, and transparency are fully ingrained into an organization’s functioning, one will ensure that honesty and transparency in finance will percolate into other aspects of a company’s performance.
Indeed, following the Agency Theory, the financial context of an organization represents the environment where the conflicting interests of all parties collide. Specifically, according to the theory, unless there is a connecting objective that links the agent and the leader, further collaboration and the successful management of a financial transaction becomes impossible (Melé et al., 2017). Transferring the specified framework into a broader context of the corporate relationships will show that, unless the organizational objectives align with the needs of employees, the latter is unlikely to follow the set code of ethics (Melé et al., 2017). Therefore, by ensuring that employees meet the established standards for financial conduct, one will create premises for general compliance with ethical principles of decision-making within an organizational environment.
MGT501 and Strategic Financial Performance
While being seemingly detached from the rest of the organizational processes, financial management is also linked to the human resource management system within an organization. Specifically, the accounting and finance department of the san organization is directly responsible for allocating the financial resources for training and the related talent management activities needed for the staff members. Furthermore, the accounting and finance department ensures that employees are provided with the financial benefits as stated in the employment contract, namely, their salaries and financial rewards (Meier et al., 2019).
Moreover, providing vital information about the current financial performance of an organization, the accounting and finance department offers a perspective regarding the opportunities for and reasonability of investing in talent management, particularly courses and the relevant training for the employees. Since certification requires particularly large expenses from a company, it is vital to ensure that staff members’ skill levels meet the set criteria, which is why obtaining data from the financial and accounting department, which contains records associated with benefits and fines received by staff members, is critical in the specified aspect of HRM-related decision-making. Finally, the accounting and finance support members can offer data that will be relevant for the processes of firing, hiring, and onboarding.
BUS520 and Strategic Financial Performance
Observing key market trends and analyzing them to elicit the information needed for further forecasting and decision-making is a critical aspect of any firm’s functioning. Therefore, a company needs the data that will inform its development of business intelligence strategies and the approach toward further market-related data analysis. In turn, financial and accounting support can offer a variety of insights into the subject matter (Rikhardsson & Yigitbasioglu, 2018). Specifically, accounting supports the data analysis process by offering the tools and perspective for further decision-making and the choice of strategies for managing key market risks. Therefore, finances and accounting supply crucial data that must be integrated into the assessment of the target market setting and the generation of financially sustainable and economically reasonable solutions.
Furthermore, the information provided by the finance and accounting department informs the decisions made within the business intelligence context. Namely, the key trends observed in the financial setting, such as fluctuations in the share prices, are afterward utilized in the business intelligence context to make forecasts concerning the future trends in the selected economic setting. Based on these observations, decisions regarding the future business strategy and the related choices can be made. Therefore, finance and accounting serve as the platform for decision-making in business intelligence while offering relevant information for further analysis and the identification of key trends in the data analysis department.
BUS530 and Strategic Financial Performance
Accounting and finance are a critical part of any company’s performance; however, to understand their role in running a successful business, one should examine the connection between accounting and economic analysis. Although it is quite easy to conflate the two, there is an important distinction that allows drawing a visible line between accounting and finance and economic analysis.
As its name suggests, accounting and finance as a corporate activity center on the issue of managing financial assets. In other words, money remains the focus of the finance and accounting department. Specifically, the accounting and finance department operates in the financial context, focusing on essential financial data and producing financial statements that support a company’s further decision-making (Hoh & Tang, 2021).
Unlike the finance and accounting concept, the notion of economic analysis performed in the corporate context is significantly broader. Namely, apart from the financial issues, the economic analysis includes the assessment of a range of other factors, including, but not limited to, sociocultural and technological ones (Hoh & Tang, 2021). Therefore, while also encompassing financial information, the economic analysis extends beyond it, capturing the data related to sociocultural sociopolitical, and technological issues (Hoh & Tang, 2021). As a result, the decisions made by an organization allow for addressing key risks and using the available advantages to the full extent.
MKT501 and Strategic Financial Performance
Similarly, finance and accounting provide extensive support for the marketing function of an organization. Namely, the information produced as a result of financial analysis and key financial projections serves to determine the scale and scope of the company’s marketing endeavors. For instance, the tools to be used to advertise the organization are determined largely by the available financial resources due to the large costs typically associated with marketing. Thus, judging by the outcomes of the financial analysis and the available resources, a company can choose between a cheaper option of using social media or more effective yet significantly more expensive ones, such as placing its advertisements on digital billboards (Edeling et al., 2021). By considering the outcomes of the financial analysis and key financial statements issued by the accounting and finance department, the marketing team becomes capable of selecting the strategy that will allow for effective promotion while maintaining a sensible use of the key resources.
Moreover, accounting and finance support marketing by offering a platform for assessing the efficacy of particular strategies and campaigns. Namely, using the data provided by the accounting and finance departments, a marketing team can evaluate the success of a particular promotion campaign. A comparison of the company’s financial performance before the introduction of a certain marketing strategy and after it is deployed offers a rather accurate account of its overall efficacy. Therefore, accounting and finance provide crucial information for the marketing department, thus, playing a vital role in its functioning.
Overall Accounting and Finance Strategy
Overall, being a vital part of any company, accounting, and finance are connected directly to the rest of its processes. Since the proper allocation of financial resources represents a vital and challenging task for any organization, it is critical to creating a premise for the members of the accounting and finance department to collaborate with the rest of the staff. Thus, the financial projections made by the finance and accounting team will inform decisions made in the rest of the company’s domains (Hoh & Tang, 2021). Specifically, working relationships between the accounting and finance departments and the rest of the company’s elements will lead to the successful and timely mitigation of critical threats.
Moreover, effective collaboration between the accounting and finance team and the rest of the company’s departments will lead to the successful mitigation of key threats that would be overlooked otherwise. For instance, when making an SCM-related decision in a complex setting requiring a detailed analysis of the essential financial factors, one will need a clear and accurate account of the essential financial trends in the selected setting to choose the most affordable and sustainable options for managing logistics, communication, and distribution processes (Rikhardsson & Yigitbasioglu, 2018). A similar need for a comprehensive overview of major financial risks and the relevant opportunities can be observed in other aspects of a company’s performance, including marketing, public relations, and other functions (Rikhardsson & Yigitbasioglu, 2018). Therefore, a collaboration between the accounting and finance departments and other teams within a company must be promoted actively.
Conclusion
The dialogue between the parties in question can be enhanced using a specific communication channel established for the specified purpose. Instant messaging and video calls are some of the most common examples of maintaining coordination of the key department’s actions within a firm. By following the specified paradigm of organizational relationships, one will be able to encourage active corporate growth.
References
Edeling, A., Srinivasan, S., & Hanssens, D. M. (2021). The marketing–finance interface: A new integrative review of metrics, methods, and findings and an agenda for future research. International Journal of Research in Marketing, 38(4), 857-876. Web.
Hoh, J., & Tang, K. B. (2021). Multinational corporation finance and accounting: An empirical transaction cost economics analysis. IIMB Management Review, 1-10. Web.
Meier, O., Naccache, P., & Schier, G. (2021). Exploring the curvature of the relationship between HRM–CSR and corporate financial performance. Journal of Business Ethics, 170(4), 857-873. Web.
Melé, D., Rosanas, J. M., & Fontrodona, J. (2017). Ethics in finance and accounting: Editorial introduction. Journal of Business Ethics, 140(4), 609-613. Web.
Rikhardsson, P., & Yigitbasioglu, O. (2018). Business intelligence & analytics in management accounting research: Status and future focus. International Journal of Accounting Information Systems, 29, 37-58. Web.