2.22. Basic Budgeting and Accounting
The finance function is responsible for creating and maintaining accounting records and managing organization budgets. HR professionals at the management level are often expected to participate in the budgeting process not only for HR-specific expenses but also by providing compensation and benefit information that is incorporated in the overall organization budget. While closely related, accounting and budgeting activities have different goals.
The accounting function creates reports to summarize the results of business activity, including the balance sheet, income statement, and statement of cash flows. All accounting reports are produced at the end of accounting periods, which are generally ...