LSBM435 How Business Operate Level 6

Task 2

Importance of accounting for business success

In order to run a business effectively, there is required appropriate data, accurate information about assets, reports, debts, profits and liabilities. Although, accounting has a significant role in decision making and management body of a corporate association. Because management cannot make any necessary decision without having a proper information to back it up. In addition, the prime objective of accounting is to keep information about financial transactions in accounting books and determines profits or loss as well as assess the financial position of the company (Storey, 2016). Last year, the firm has invested in 2700 hotels, in returns it has gained profits of 3005 on them which is higher than its competitors. Additionally, Marriott has purchased almost 30 million shares from its common stock whereas in 2018 it repurchased over 2.5 million shares which are valued by $320 million. Along with this, accounting prevents misuse of assets, controlling costs, enhancing production and supports in raising efficiency to entire business organisation. Basically, in general P&L account spilt in two sections, such as-

Revenues – it consists entire information of all incomes which is generated from primary business activities, i.e. sale of products and services. On the other hand, revenue is gained from secondary activities, i.e. bank interest as well as further monetary incomes. In addition, secondary revenues are unpredictable so as to grow at market, management should focus on primary sales revenues (Ward, 2016).

Expenses - It encompasses with all expenditure on primary activities, such as- labour costs and material.

Functions of HR department in business

The human resource department is liable to control different functions of every business organisation, it involves record keeping, labour law compliance, compensation, recruitment, training and development etc. Following are the main functions of HR for a business: -

Recruitment and selection – It is the process of screening, captivating and selecting potential as well as qualified candidates who match specific job criteria. The prime goal of this is to attract qualified applicants and encourage people to opt them out (Dunning, 2014).

Training and development – It is one of the fundamental elements of human asset administration. It is the endeavour to enhance the present or future execution of a worker by expanding the capacity of a representative through teaching and expanding one's abilities or information in the specific subject.

Maintaining Good Working Conditions – Another main role of human resource manager is to render good working conditions to employees as they like working environment. It is necessary for management to encourage or inspire employees as they can contribute to accomplish business goals and objectives.