2.2 Explain The Role Of Administration In The Financial System

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2.2 The role of administration in financial systems is budgeting. We have systems in place, so we can see what the company is spending. The budgeting system will show where we have areas left where money can be spent and where we don’t have any money left. An example of this is when looking at our budget lines in school maths might not have spent as much as science so therefore we know we can still get any resources that we might need. Another role that financial systems have is to analyse revenue and expenditures. Again, this can be done with the budgeting system. Another role of administration in financial systems is ordering. We have the system that allows us to order online; by using this system we can see what we have ordered and what …show more content…

Examples of these would be decision making. This decision making would be usually made by leadership. We have decision making when making a new plan or putting something new into place. An example of this would be if we were to change our uniform, the advantages and disadvantages would be looked at. Leadership may also look at problem-solving. If something is not working right or there is a problem leadership will look at how to make it better. They may need to adopt something or just change the method completely. Communication is a nonfinancial system. Having communication ensures that we can tell other people and maybe stakeholders things. This is especially important in my organisation as we often need to communicate with parents. We have planning systems in place, this is to ensure everyone knows what is happening on that day and nothing can be overlooked. Our planning system is an online diary that everyone has access to. The similarities between administrative in financial and non-financial systems are that everyone needs to use the systems correctly for them to work. The differences are that some non-financial systems can be used without the use of ict, whilst financial systems you need the use of ict as they all link