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 at large

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.

When it comes to reviewing a company’s overall practices and efforts, the finance department is key. A finance department will work cohesively with the company to build a corporate environment that will be able to use the financial resources of the company in order to ensure that the desired level of customer satisfaction is met.

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 organization which houses it.

Key Positions in a Finance Department

A finance department is comprised of several key positions that bear the burden of responsibility when it comes to maintaining the cohesiveness and overall productivity of the department as a unit of the company.

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

Finance Director

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. The finance director is tasked with giving a financial forecast for the company and disclosing certain financial information about the company to the shareholders.

Deputy Finance Director

The deputy finance director is usually responsible for putting together the company’s 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, the deputy finance director is also responsible for managing the finance department’s team of employees.

Accountant

The next position of importance in the department of finance 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.

Finance Specialist

The finance specialist basically handles capital investments. This position may also require a bit of analytical work such as as reconciliations, maintaining the general ledger and keeping a close eye on the funds of the company.

Evolution of the Finance Department

With each passing year a finance company evolves into an entity that is responsible for increasing the company (and shareholder’s value). This is done by the implementation of strategy. If you are looking for additional information on the roles and responsibilities of a finance department then you might consider doing an Internet search on a specific company’s finance department or do a simple Internet search on the traditional versus the modern duties of a finance department. You can also go to your local community college and speak with a business professor.