Finance Department


The fulfillment of the company's objectives depends on all departments, because permanent teamwork is necessary. However, to master the complexity of organizations in a better way, each area has its own functions that, although related to those of the other sectors, have particular characteristics.

What are the functions of the Finance Department?

The functions of the finance department have as main purpose to increase the value of the business and, therefore, to define its strategies regarding the viability of the resources available to them.

As a consequence, the responsibilities of the finance area are:

Make the strategies measurable

When you have defined where you want to go, in how much time and what resources are going to be used to achieve it, finance should focus efforts in that direction. How? With indicators. That is, costs are establishedto the steps necessary to reach the goals.

Control results

Finance functions also involve monitoring and recording resources. For example, it's your responsibility that when sales projections are below what was expected when the strategy was made, they let the rest of the team know and cuts are made to avoid losses. On the contrary, it's also necessary that when the projections are higher, adjustments are made to the investments.

Provide resources with opportunity

The finance department must ensure that no resources absolutely necessary for priority business tasks are ever needed. Therefore, you should always be aware of the billing and collection, as well as the search for investment and financing options. Part of the same is to channel resources to the corresponding areas.

Register accounting operations and financial data

The finance area must make the financial statements of the company after a certain period, usually one month. With this, the business performance must be compared with the proposed objectives and, if necessary, refocus the strategy.

Plan according to the information recorded

Another of the finance functions is that, with the data obtained by the financial statements, the past and current situation of the company is known in depth. As a result, there will be the necessary conditions to carry out an effective strategic planning, with the establishment of well-defined objectives, organization of payments, collections and investments, anticipating deviations and with established techniques to face unfavorable situations.

As you'll see, the functions of the finance department aren't few or simple. Although they are highly specialized tasks, it's necessary that business owners are trained to understand the language of the area, as well as the actions that are executed, so that they have real control over the planning and implementation of strategies.

Read more articles in our blog.

Share on Facebook Share on Twitter Share on LinkedIn
Back to top

Home | Privacy Policy | Terms of Use

Copyright 2011 - 2020 - All Rights Reserved