Finance Managing Departments
Every company consists of a department that will manage their finance which is a separately present to handle all the money matter and it is known as the finance department. This software whose source is here also includes different departments that manage different issues. They have a head person who is a chief officer and they are known as “controller”. Some other names by which the chief officer is known as by other companies are Vice-President of Finance, Financial Director, Financial Manager and Treasure.
Depending upon the activities they will manage, the finance department is commonly divided into many subsections:
- Wage accounts
- Financial accounts
- Cost accounts
- Financial planning
- Credit collection
On the other hand below are listed common departments that the finance of the company is managed by.
- Audit department
- Cost accounts department
- Financial planning and budgeting department
- Credit department
- Cash department
- Accounting department
Auditing of records of finance and accounting is done by the audit department. It also does detection of inconsistency in finance following which, if it can be prevented, it prevents it and correction of errors is carried out. If there are any malpractices, that also is identified by this department. All the expenses that have happened within the company are examined by them and if money has been spent unnecessarily and unauthorized spending has happened, it will indicate the management towards that.
Cost Accounts Department
In the sector of manufacturing and production if there are any problems with finance and the different types of costing all is dealt by cost accounts department.
Financial Planning and Budgeting Department
Plan design preparation to acquire funds and utilizing it in the best way is done by this department. Budget is the form in which presentation of these plans is done. The budget acts both like a tool as for planning and also a tool to control. Budget is used as a standard using which this department controls the real activities of finance.
Functions performed by this department is completed under the control of treasurer. Supervision of full sales on credit is done by the credit department. It also puts in efforts to collect the credit policies of the company on time. The creditworthiness of the consumers is also known for collecting information about it.
This department is also under the control of the treasurer. All the money funds are received and payments are made on behalf of the company.
An accountant is in charge of this department. Every single transaction that happens is kept a record of by this.