The finance department is a crucial department in business as this where the all matters relating to finance in the company are regulated. In a nutshell, the department tells the business how it is performing financially. This includes monitoring the cash flow purchase of goods and much more. People with finance and accounting experience can apply for a finance job in any department using georgia department of labor gainesville website, which offers more details. To see more on the job roles of the finance department, read through this article.
Job roles and responsibilities of the finance department
Managing the cash flow
A healthy cash flow ensures that the company has enough funds to run the day to day operations and still maintain a profit. A finance department through its different department regulates the amount of money going to the account payables and accounts receivables. They regulate the policies that govern credit collection from customers to make sure the company gets it due in time. Without such kind of management, the company will soon lose track for things and start making a loss.
Regulates various accounts on a daily basis
Various types of accounting fall under the finance department. They handle the daily record keeping of all accounts as per the company policy. Bookkeeping which enters the transactions on a daily basis plays a crucial role in when balancing the books at the end of a financial period. Such data is also used when making major decisions in the department as well.
Designs short and long term financial strategies
A company without a financial strategy is usually headed for doom. However, the financial department plans and strategies for short and long-term strategies that guide the company. It involves making budgets and projections for sales and expenditure in future putting in considerations all factors involved.
Another crucial role of the finance department is the internal audit. All areas require scrutiny and controls which the internal auditors must do. Where there are challenges, the departments discusses with the concerned department for clarifications and corrections. It is this department that also is responsible for knowing when there is fraud in the company or waste and recommend the best way forward.
Financial advice to the company
The management must get constant advice on the performance. As a matter of fact, major decisions are based on the financial position of the company. The head of the finance department sits at the management meetings, and most of the questions are directed to him or her. Their advice are usually taken seriously