The role of finance in the company

Internally: provide decision-making information for enterprise management, such as early investment decision, tax planning, financing plan, etc. Records of business activities in the event; And the data of later income calculation, profit summary and forecast. Simply put, it is supervision, management and control.

External: provide external users of enterprise financial information with the information they need, such as government departments, creditors, potential investors, etc. They need relevant information to make a reasonable decision.

Extended data

Financial information is the basic basis of enterprise management decision.

Under the condition of market economy, the correctness of enterprise decision-making is the key to the success or failure of enterprise management. The correctness of decision-making often depends on the integrity, reliability and timeliness of financial information.

2. Financial analysis is an important guarantee for enterprise decision-making.

Financial analysis is not only the premise of making a plan, but also the main means to check the implementation of the plan, reflect the work results and put forward suggestions for improvement. Through the accounting analysis of the results of production and operation activities of enterprises: ① the potential and ways to improve economic benefits can be tapped; ② Weak links in enterprise management can be found; ③ We can find out the gap and reasons, and then put forward countermeasures.

3. Financial information is an important basis for assessing the performance of economic responsibilities of enterprise management.

There are many aspects of enterprise management, such as the management of employees, the management of capital operation, the management of production and operation, the management of corporate culture and so on. This requires the cooperation of all departments of the enterprise, especially the top management of the enterprise.

Financial function refers to the inherent function of enterprise finance in operation. The function of finance comes from the capital movement of an enterprise and its economic relationship, which is manifested as the management function in the process of fund raising, fund utilization, cost and distribution, including financial forecasting, financial decision-making, financial planning, financial control and financial analysis.

reference data

Baidu Encyclopedia-Financial Function