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What is the role of the financial department in an organization? This is a tricky question, one that can only be answered by those who have walked the halls and done the grunt work necessary to answer it. The finance department's responsibilities can be summarized this way: produce a budget; maintain financial stability; and reports, prepare reports, and make recommendations to senior management. A good finance department is key to the success of any organization, but no matter how large or small the budget is, the financial issues of any organization are usually a top priority.For a company of any size, the finance department must be consulted to determine the cash flow issues of the organization and recommend changes that will correct such problems. The first thing the finance department does when advised of a cash flow issue is to prepare and submit a cash flow analysis. Digital Waves is typically an uncolored document that simply presents the facts pertinent to cash flow, including: current assets, current liabilities, and anticipated future liabilities.Many organizations also have separate accountants and auditors. In smaller companies with limited staff and revenues, these positions may be filled by part-time employees. Larger organizations employing hundreds or thousands of people often have financial departments of their own. When part-time and contract employees are responsible for day-to-day accounting functions, these functions are usually performed by specialized departments, like the Office of the Chief Accountant (OCA). Other major roles are occupied by general accountants and auditors, including the OCA's General Accountant and the Internal Revenue Service's internal revenue earmarking, or IRS.The second major responsibility of the finance department is to prepare and maintain accurate financial records, called accounting records. These records must comply with all of the applicable laws and regulations. The OCA's General Accountant is responsible for producing an annual budget and the subsequent financial reports. Auditors will review accounting records to ensure that the organization has not made any errors in recording the financial transactions it had made. To do this, the auditing manager must review and access the proper accounting records as well as gather other relevant information from the company.The third main responsibility of the financial department is to ensure that all services and products that have been contracted to the organization are properly delivered. A good service management system will allow a company to maximize the services that it contracts for while effectively managing the costs of these services. The service management team will include internal and external service representatives. The manager of the service management department is responsible for ensuring that all services and products have been contracted out at the right cost and with the correct levels of performance.The fourth responsibility of the finance department is internal control, or control of the organization's financial resources. Internal control is exercised on a daily basis to ensure that the procedures applied to ensure financial responsibility is maintained. Internal control is based upon information systems that are employed within the business. Financial institution legislation requires that these systems be reliable and effective. Internal control consists of three elements: policies, procedures, and control standards.The fifth responsibility of the financial reporting and analysis department is to ensure the accuracy of the financial statements prepared by the accounting departments. This includes undertaking investigations that test the veracity and completeness of the financial statements. The department also performs risk assessment activities to identify potential issues that could affect the financial reports. The work that this department does is very important for the organization, since the public would likely rely on these financial reports to make business decisions.In conclusion, each of the three principal roles that an accounting department plays in the larger organization must be clearly defined. The chief financial officer, who reports directly to the CEO, ensures that all aspects of the organization's financial responsibilities are performed in accordance with statutory requirements. Internal control and maintenance of financial statements are a key responsibility of each member of the accounting department. This ensures that the financial reports provide the accurate, reliable financial information that the public needs.