Notes

Responsibilities Of A Financial Department
A very important task of the financial department is involved in forecasting day to day financial activities with long term business targets. These are normally done through projections and reviews. The long term, medium term, and short term goals are determined by the financial forecasts that your financial department gives. Financial forecasting is an important part of business analysis. It involves analysis of financial statements and data to forecast future financial activity.

Budgeting Cash Flow Budgeting is a part of financing business activities. The Finance Department is involved in budgeting, controlling spending, financing, and allocation of funds. The cash flow budgeting and accounting department are involved in decision making and budgeting for the company. The manager of a company may adopt the help of these departments when formulating a strategy or planning a project. The finance department determines the company's budgeting policies, prepares the funding plan, analyzes the funding plan, and implements and reviews the financial plan.

Budgeting and Control The main role of the budgeting and control department are to prepare and review financial statements for the year ahead and make budgeting decisions. In essence, it controls the financial operations of a company. The finance department will assist in deciding how much to spend on a particular item, what to buy on credit, how much to sell, how much to transfer, etc. The budgeting and control department then provide guidance in making financial decisions.

Accounting The purpose of accounting is to record the financial transactions. All transactions in a company are recorded in the book of accounts or ledger accounts. The accounting department creates reports and tables which represent the recorded transactions. The accounting department analyzes these financial records to provide reports to management. The accountant creates reports from the recorded financial transactions for the purposes of management's decision making.

Financial Reporting Every day, financial reports is produced by the accounting department for the purposes of management's decision making. The accountant provides financial statements, operating statements, profit and loss statements, statement of cash flows, and other financial reports that are required to be furnished to the management. Financial reporting is an essential part of every day business operations.

Accountant/Bookkeeper A person who works as an accountants or bookkeepers performs clerical duties as well as various other duties as required. The person may perform functions as a bookkeeper by recording the financial transactions as they happen. The person may also be responsible for examining the books at the end of the reporting period. The responsibilities of the accountants or the bookkeepers include preparing reports, maintaining accurate accounts, analyzing financial statements, and providing advice to management. Most accountants and bookkeepers are paid on an hourly basis. Generally, the salary of a bookkeeper is above minimum wage.

CFO The duties of the CFO vary depending on the size and structure of the financial department. Typically, the CFO provides consultation to management on important and difficult decisions. In some cases, the CFO may provide investment advice. The most common duties of the CFO include preparing financial reports, reconciliation of financial statements, providing advice to management, and advising on investments. Typically, the CFO makes recommendations to management concerning issues such as merging acquisitions, selling certain assets, offering dividends, and acquiring others.

Record Keeping Generally, all financial department personnel are charged with the responsibility of recording financial transactions, calculating tax liabilities, creating financial statements, providing advice to management, and maintaining accurate accounts. All record keeping responsibilities must be performed in a timely manner. The records include information such as sales, purchases, withdrawals, income, loans, leases, expenses, payroll, and net worth. A majority of record keeping responsibilities must be performed on a daily basis. For instance, a loan payment should be recorded every day, bill payments should be recorded every two weeks, and a financial statement should be recorded at least quarterly.
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