Home Finance Finance department

Finance department

It is a crucial wing of an organization (of both public and private nature) that does the job of money management.

29

What is a Finance Department

It is a crucial wing of an organization (of both public and private nature) that does the job of money management. It’s business functions primarily include:

  • Planning
  • Organizing
  • Auditing
  • Accounting for and controlling the Organisational finances.

The finance department also usually generates the company’s financial statements.

Roles and Responsibilities of a Finance Department

The activities that are expected from a finance department cover a wide range starting from basic bookkeeping  to providing information to assisting managers that helps them in making strategic decisions. Moving ahead, what to expect from your finance department will depend largely on factors such as how much involvement the owner/manager has in the organization.

The finance department is also responsible for management of the organization’s cash flow along side ensuring that there are enough funds available to make the day-to-day payments.  This area also encompasses the credit and collections policies for the company’s customers, to ensure the organization is paid on time, and that there is a regular payment policy for the company’s suppliers.  In most organizations there will be some form of forecast prepared on a regular basis to systematically calculate the upcoming cash needs.

Note:

Moving Ahead we will Explain the Finance Department in the Context of a Government Authority.

Outcomes and Scope

The Finance Department of a Govt, works with an aim to:

  • Improve and Introduce Efficiency in Government Operations and
  • Ensure Effective Functioning of the Administration.

The Finance Department operates with:

  • An aim to evaluate and review the government programs and the associated expenditure and staffing proposals.
  • Keep an eye on expenditure and staffing estimates.
  • Administration of Government accounts, including the Public Account.
  • Commission of Audit.
  • Commonwealth superannuation schemes (Applicable to Commonwealth Nations)
  • General policy guidelines for Commonwealth statutory authorities, Commonwealth companies and government business enterprises and monitoring of financial performance of government’s business enterprises.
  • Keeping an eye on Commonwealth public sector financial management policy and development.
  • Ensuring fair Conduct in major asset sales.
  • Transport and storage services.
  • Coordination of purchasing policy and civil purchasing.
  • Disposal of goods.
  • Planning, execution and maintenance of Commonwealth Government works.
  • Government printing and publishing services.
  • Electoral matters.

There is a whole lot to learn when it comes to Finance Department, visit again for more.