1. Unit 3 Accounts & Finance Financial Accounts

2. Learning Objectives To be able to explain the purpose of accounts To evaluate the importance of final accounts to each stakeholder group

3. Financial Accounts It is essential for businesses to keep detailed records of purchases, sales and other financial transactions Accounts are financial records of business transactions Accounts are needed in order to provide essential information to internal and external stakeholders

4. Task Next to each question write down the name(s) of the stakeholder(s) affected -How much did we buy from our suppliers and have they paid yet? -How much profit did the business make last year? -Is the business able to pay wages next week?

5. Stakeholders and account information Different stakeholders will use accounts for different purposes Create spider diagrams for the main stakeholders and how they use business accounts Managers Measure the performance of the business to compare against targets and competition Help take decisions, eg. investments Control and monitor the operation of each department Set targets Banks Creditors (suppliers) Customers Government Investors Workforce Local Community Banks Creditors (suppliers) Customers Government Investors Workforce Local Community