Accounting and Finance Functional Area Plan, Research Paper Example

Executive Summary

This is a proposal of the functional plan in the area of Finance and Accounting. It is a plan that will help the organization be able to increase its overall productivity in the long run. The proposal gives product to a model that will be efficient and effective in the organization activities to make a profit. The model can gain implementation as soon as the company sees it as viable to incorporate. The proposal will aid the executive, CEO and employees to see how the model will be beneficial, reliable and modern. The model does focus specifically in accounting and finance section of the organization. This is to help this area as it is the backbone of the organization. It makes sure the organization is thriving in the right profit, revenue and cost margins. This model will show a whole different world of opportunities in ventures for the organization.

Part 1

Accounting and Finance Manager Composition

The new improvement of the current business model will involve innovation in technology. This is the best course of action for the organization as various researches have been showing over the years. That in improving the state of technology in a functional area increases the unit’s productivity tremendously. This will also be profitable as the estimates show that the budget will be ranging from $500,000-1,000,000. This will be inclusive of procurement of the goods, installation of the technology and teaching the employees of the new technology. The cost and expenses will be slightly high at the beginning. An estimation of $200,000, due to high installation charges, but will be relatively low in the long run period. The revenue in the first financial year after installation will be relatively more profitable than the previous one. The maintenance and updating of the technology will continue a trend of consistent revenue (Jordan, 2012).

In the issue, adhering to ethical consideration of the stakeholders in implementation of the Innovative Technology Model will be evident. The stakeholders will not go against the organization’s purpose set out. They will only ensure they achieve their purpose by updating their business model. The implementation will seek a majority vote in agreement to accepting the model and assimilating it in the organization. The model will consider the environmental aspect of the organization in its implementation. That is both the internal and external; will it gain acceptance or will it create tension in the internal environment? In the case of the external environment they may ask, will it pollute the community and act socially irresponsible? The model is, however, environmentally friendly in all aspects, both internal and external. There is also the aspect of the law. In the organization, implementing the model, quests to seek if they will be acting according to the law of the land. The innovative business model does pass all the legal requirements that the organization requires to meet (Ethics Resource Centre, 2012).

Part 2

Accounting and Finance Manager Executive Summary

There are various issues affecting the accounting and finance area and is derailing productivity. They include poor record keeping methodology. The employees in this area have an inadequate system of keeping the business records, which are essential in all areas of the business venture. This pilots to inadequate information this area gives to the managers, which becomes unreliable. Therefore, the estimates in budgeting and revenue are over or under estimation. This meaning the business may be losing money without their full knowledge of how much. The flow of information is also, unreliable because the current model does not provide this mechanism. This leads to the information relaying process being slow. This will cost the business money and opportunities in the promotion activities. For instance, there is a group of investors willing to be shareholders, and they acknowledge this through the faulty communication network. The information will reach the management when it is too late. This costing the business funds they would use in bettering their service and product. There is also the aspect of the employees being competent. The employees are many and seem not to have much knowledge professionally. This is a problem for the management as they will require employees to work twice as hard. This may lead to the employees being de motivated.

There are, however, remedies for updating the accounting and finance area. They include analyzing the record keeping system. In the issue of record keeping system being faulty, there should be a team of auditors especially in the selection of this predicament. They will be able to notice if there is a problem and where it lies. They should also be able to coach the staff to do these themselves to reduce on costs incurred by the organization. The business owners should put in place a reliable network system for elaborate communication. This will prevent any gaps of information and will provide a reliable flow of information in the business environment. The business should also recruit employees their best, for example, those employees working for other prestigious organizations. This will ensure their qualifications meet those of the business objectives.

In the case of updating the business model, they should choose a model, technological in orientation. This will ensure they are able to stay up-to-date with the business changes. This is the Innovative Technology Model (ITM). The business model should not be complex, should be one that the CEO, manager, employees can learn conveniently over a short time. This will ensure that after adapting the new business model, the business, will not take long to adjust.

In accounting and finance functional area, the employees have titles, descriptions and skills that are a requirement. There is the financial analyst, who is in charge of relaying financial information to the business. For example, the current trends in the market, customers’ preference, what is in season, business ideas among others? The skill requirements include, being able to stay current, relevant and critical on behalf of the business. There are the auditors of the business who may be part time or full time. They are in charge of cross checking if the financial reports checkout to make sure there are no errors in payments and receipts amounts. The qualifications include recognition that the individual does possess a certificate in the profession. They are flexible with their schedules and work for relatively long hours. There is the accountant who is in charge of composing the financial reports that the auditor uses. They have to be reliable, attentive, and perfectionists to minimize errors. They should also have a certificate to show they have qualifications for the job.

The functional area of accounting and finance can support other areas like production, inventory, sales, and marketing. This is in assuring the company can meet its business objectives. In production, it can ensure that the budget estimates consider the probability of an increment in prices of goods and services. Thus, they will not assign the management an exact figure that may limit the production team. In the area of inventory and sales, they should not be too strict in assigning other funds for goods. This is in the case of goods sold out and need reimbursement, but will not because there is no stock depletion. There are still other goods they need to sell. In the marketing area the accounting and financial section can provide incentives for the team to motivate them, (Jansen, 2010).

Part 3

Recommendations in professional development

The business does require contacts in the form of professional organizations that will help the business stay afloat in knowing the trends and current events. There are two organizations in recommendation, which include American Bar Association (ABA). It is an organization with a large group of members that will provide the ethical background and vital knowledge that the business needs. There is also Health Care Compliance Association (HCCA), which provides all the information that the business will require to have in terms of health standards. They also hold conferences that allow other business owners to share their knowledge. This also enhances networking among various businesses, which is a reliable tool for a business success providing information in all aspects that are, competitors, laws and government among others.

References

Ethics Resource Centre. (2012). Resources for Professional Development of Current and Future CEOs. Retrieved from http://www.ethics.org/page/resources-professional-development-current-and-future-cecos.

Jansen, E. (2010). Accounting & finance: a basic introduction. Netherlands: Eleven International Pub.

Jordan, M. (2012). Information, technology, and innovation: resources for growth in a connected world. USA: Wiley

Maddock, G. (2011). Brand new: solving the innovation paradox–how great brands invent and launch new products, services, and business models. USA: Wiley.