How Accounting and Finance Functions Support a Company’s Goals

MGT599 SLP 3
Your Name
Trident University International
MGT599 Strategic Management
Due Date
MGT599 SLP 3
Undoubtedly, the accounting and finance departments are instrumental in the overall well-being of any organization. This paper will dissect the role played by this department in promoting an ethical organization, supporting human resource function, interacting with economic analysis, and supporting the market function. The paper will also clarify the importance of a strong working relationship between the departments and other functional areas.
Strategic Financial Performance in an Ethical Organization
Accounting and finance play an essential role in maintaining the ethical fabric of an organization. One of the ways ethics are maintained is through proper financial reporting. Accounting processes are responsible for providing accurate financial information through bookkeeping, preparation of financial statements, and proper auditing. When financial reporting is done transparently, it provides reliable data to stakeholders and other parties (Islam, 2022). Consequently, the parties using the data can make informed decisions. Proper and transparent financial reporting also promotes integrity and increases the trust of investors and other players in the organization. 
Accounting and finance also maintain an ethical organization by establishing critical internal controls. Examples of these controls include implementing internal systems to prevent fraud, safeguard assets and ensure that the organization complies with all financial/ accounting laws and regulations. A perfect example of these controls includes requiring approvals and carrying out regular internal audits. Additionally, the accounting and finance departments promote ethical practice by ensuring that professionals in these departments adhere to the Generally Accepted Accounting Principles (GAAP). This protocol ensures that the financial/ accounting practices follow a reliable, ethical framework (Islam, 2022). Additionally, these departments contribute to ethical organizations by making ethical decisions whenever they are faced with a dilemma. 
Human Resources and Strategic Financial Performance
There are several ways in which accounting and finance support and interact with human resources functions. One way is through collaborating in the preparation of payroll and compensation. Accounting and finance departments are responsible for processing monetary resources. On the other hand, the human resource department is the one that determines the compensation for each employee. Therefore, the two departments work together to ensure the payroll is accurate and the compensation is appropriate. Additionally, the two departments collaborate to ensure that all tax regulations are met. For example, the two work together to ensure that they remit any taxes required. Such taxes include the pay you earn for the employees. 
The finance department also collaborates closely with the human resource department for budgeting and forecasting. The human resource department plays a crucial role in hiring and training. The costs for hiring, training, and other aspects concerning employees must be inculcated into the financial forecasts of the busine...