What Are the Functions of a Finance Department?

A finance department basically has three main functions: To provide strategic financial support regarding operational and general business planning To provide daily financial services functions To meet and surpass the internal and external needs and financial reporting requirements of the company The finance department generally focuses on providing relevant information necessary for upper level management. Such information is crucial in determining how a company can make better financial decisions. Services and Duties of a Finance Department In order to implement these functions, there are a number of services that need to be performed. For example, the proper preparation of the annual budget as well as compliance of regulatory codes are both important services of a finance department. It is important to note that the specific responsibilities services of can vary from company to company. In effect, a finance department is always evolving in order to bring greater value to the organizations. Key Positions in a Finance Department When you think about the overall structure of the finance department, there are four key point people that may come to mind: The finance director Deputy finance director Accountant Finance specialist

1. The finance director is the head of the finance department. This individual will have the supreme responsibility to ensure that all financial reports are accurate and up to date. 2. The deputy finance director is usually responsible for putting together the companys annual budget. In this position, the deputy finance director will be responsible for developing an overall financial strategy. Sometimes referred to as the finance manager. 3. The next position is the accountant. The accountant is responsible for handling the accounts payable and accounts receivable. Accountants also process payroll. Other duties include putting together financial-related documents such as reports, auditing, and closing out accounting books. 4. The finance specialist basically handles capital investments. This position may also require a bit of analytical work such as reconciliations, maintaining the general ledger and keeping a close eye on the funds of the company.