Finance Department

The three main activities that the finance department does is preparing accounts, paying wages and salaries and obtaining capital and resources.

The finance department is one of the most important functions of a business, it is one of the most important because they keep track of all the money that goes in and out of a company. If the finance department keeps an accurate record of all the money coming in and out the business will be able to tell you how much money has been made, or how much money has been lost.

To control the financial side of a business you would allocate different departments budgets and expect them to keep their planned levels of income and expenditure. The financial staff would check this regularly and tell you if each one was still on target or not.

The financial department is also very important because they keep the business going.

The main objectives of the finance department.

o Keep all the financial records required by the organisation, detailing all the receipts and payments that have been made.
o Prepare final accounts from those records required by law.
o Monitor the income and expenditure of different departments against their budgets.
o Provide continuous up to date financial information for managers about business performance.
o Pay salaries and wages to staff
o Pay accounts owing to suppliers
o Control the levels of debts owed to the company
o Obtain additional finance when required, from the most appropriate source
Job roles within the finance department

Financial director: giving advice to senior managers on the overall financial policy of the organisation. Overseeing the company budget. In charge of all the finance functions in an organisation.

Finance manager: managing the finance functions and staff. Advising on financial resources.

Chief accountant: overseeing the preparation of the final accounts of the organisation.

Management accountant: producing continuous financial information for management.

Credit controller: advising on credit policies. Ensuring that the money owing to the company is kept within agreed levels.

Chief cashier: responsible for overseeing the company payroll and salary/wage section.

Wage clerks: assist the payroll administrator in the production of salary and wage details.

Ledger clerks: assist the chief accountant in the recording of all financial transactions.

Credit control clerks: assist the credit controller in checking the credit status of new customers and existing accounts. Reminding customers of overdue payments.