The finance department is described as one of the departments in an organization responsible for acquiring funds for the company. At the same time, they manage funds within the organization and plan to spend funds on many assets.
They have different tasks to do in an organization, so it is imperative to have a finance department in a company.
Purpose of a Finance Department
Their purpose is based on many things that deal with making a business function well, and the finance department includes planning, auditing, organizing, accounting, and controlling the company finances. Another thing they do is to produce the company’s financial statement.
Responsibilities of Finance Department
- Fixed Assets.
- Budgeting and Forecasting.
- Business Strategy.
- Accounts Payable.
- Accounts Receivable.
- Cash Management.
- Financial Reporting.
Functions of Finance Department
- It is to maintain an update of bank reconciliation on all accounts and monitor and analyze investment activity.
- A financial and budgeting controls over county vehicles, and by replacing and financing, tracking of ownership, obtain ownership records.
- By performing treasury relation functions, including a day-to-day cash forecast to maximize the use of the County’s funds in meeting cash payment obligations.
- The finance department oversees the County’s buying card program by creating policy, checking the training manual, coordinating the issuance and cancellation of cards, and checking and communicating changes to card dollar and transaction limits.
- They monitor the program’s activity for compliance with established guidelines and doing an annual audit of card use and a physical inventory of all cards issued under the program.
- Another thing is that they apply for proper and timely accounting treatment for County services and activities. By checking financial reports and analyzing the payment balances daily to ensure that financial statements are accurate, complete and reliable.
- Maintaining organized up-to-date work papers, procedures manuals, schedules, and files to retrieve, reference quickly, and then support the annual audit.
There are reason and importance for everything department in business, and the financial department is essential because it plays a vital role in the organization.
Then is essential in all business functions. They also provide significant finances to all other departments to carry out their activities.