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Week 1 - DQ 1

Choose one of the organizational departments of a business: accounting, finance, HR,

or otherwise. What is the role of this department? What type(s) of information does the

department need? How does the department use that information?

The role of an accounting department is to help an organization to run efficiently, to keep records

accurately, and to pay taxes in a timely manner. The accounting department must offer budget

analysis, information technology consulting, limited legal advices, and investment planning. The

accounting department must also be able to analyze and report financial information to

individual clients, companies, and government (U.S. Bureau of Labor Statistics, 2008).

Banks statements, invoices from suppliers, billing to customers, employee earnings records

are a few examples of source documents that can be collected by an accounting department

and processed by its accounting information systems. Source documents can be paper

although electronic files and web communication are growing at fast pace. Nowadays, we

often hear about “paperless systems”. Source documents “are crucial to accounting

information system” (Larson, Wild, & Chiappetta, 2005, p. 264).

An accounting department uses the above information by putting them in the form of

reports. Reports provide valuable information to upper management for making control and

planning decisions (i.e. find out if there is enough money to make an investment or not).

Furthermore, information provided by an accounting department helps external users to

decide to invest in or lend money to a company.

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Week 1 - DQ 1 Choose one of the organizational departments of a business: accounting, finance, HR, or otherwise. What is the role of this department? What type(s) of information does the department need? How does the department use that information? The role of an accounting department is to help an organization to run efficiently, to keep records accurately, and to pay taxes in a timely manner. The accounting department must offer budget analysis, information technology consulting, limited legal advices, and investment planning. The accounting department must also be able to analyze and repo ...
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