What is the work of finance department?
The finance department has a key role in any business, irrespective of the size of the company. If you’re considering employment within the financial sector of any business, these simple guidelines will help inform you about the structure and roles of company finance divisions and give an idea of the type of jobs entailed in work of this nature.
Finance Department and Accounts payable
Every business finance department will have key responsibility for paying invoices and bills in a timely fashion. Paying invoices on time helps ensure continued good relationships with vendors and does not sour any ongoing orders or contracts currently in hand. The accounts payable team work closely to monitor prices and ensure all discounts are applied to final bills, while also making sure that invoices are paid by due dates to reduce any risks of late payment charges.
Accounts receivable teams have responsibility for tracking money coming into the business and also conducting any essential credit collection actions. The accounts receivable team will generally be responsible for creating invoices and monitoring the timely receipt of payments, reminder systems will need to be in place to ensure late paying customers are tracked.
The finance department is generally responsible for managing and administering the payroll system. Even when payroll is contracted out to an alternative provider, there will be responsibilities for sending off the data and advising of holidays, sickness, overtime and bonus requirements. The payroll team is also responsible for ensuring all payments are made to HM Revenue and Customs and for year-end expense accounting.
Financial statements and reporting
Financial reports and statements will be required for a number of reasons throughout the year and also when the end of year accounts are produced. Financial controllers have responsibility for analysing computer data and producing a variety of technical financial reports in order to meet business goals and aims.
Finance controllers work to ensure legal compliance with standard accounts practices and to ensure fraud and theft are prevented. Procedures need to be set in place for the company to follow so that the financial process is transparent and employees follow best working practice requirements.
Mont Rose College in Ilford, London offers a variety of courses in accounting and finance which will help anybody prepare for a career in the accounting sector or for work within company finance departments.