The accounting function in any business is key to managing the working capital (liquidity) of the business so that it can operate day to day. The accounting functions is responsible for recording money coming in, sales ledger and money going out purchase ledger. The key purpose of the accounting function is to ensures monies are received on time and payments are made when they fall due. This is collectively known as managing the cashflow. An entry accounts position is likely to be working within these important department tracking, recording and summarising all transactions.
Other accounting functions are payroll, inventory management, budgeting management, financial reporting, Internal reporting and efficiency analysis and taxation reporting. The accounting function is central to the wider company finance function of decision-making on investments, dividends and borrowing.
