Notes

Services Provided By a Financial Department
The head of a company, or the person who manages its financials is called the financial secretary. This person has to make sure that the books are well-kept, and that no errors have been made in the calculations regarding the business's finances. A lot of paper works have to be prepared before any transaction can take place between the management and the financial department. There must also be regular reports and updates given to the concerned party on the status of their finance s.

How much do you know about these responsibilities? Do you even know what role your financial department plays in the whole organization? The answer is very little. Only when you become a manager, do you realize the extent of the task and the scope of your contribution to the organization's success. At first, financial planning may seem quite difficult and confusing. You cannot simply look at it and say "I will do this" or "I will do that" because it is a continuous process.

For example, before you can plan anything, you will have to understand the difference between accounts receivable clerk, accounts payable clerk, and payroll clerk. Then you will have to figure out how to pay the bills of the accounts receivable clerk and the payroll clerk. After that, you will have to determine how much should be paid to the accounts payable clerk and how much should be paid to the payroll clerk. When you sum up all these payments, you will arrive at the deficit or the total amount of money that is deficit.

To arrive at this final figure, there are a lot of meetings between the manager of the finance department and the account receivable clerk or the payroll manager. They will sit together with a pencil and paper and draw monthly figures. At the same time, they will prepare an income statement and a cash flow statement. Once they have these final figures, they will discuss them with the CFO (Chief Financial Officer) of the company. The CFO will give the managers their approvals, which then becomes the policy for the company.

A lot of finance reports come from the accounts payable and accounts receivable clerks of the company. This is where the service management function comes in. The service management accountant will review those financial reports, do some analysis, and go over the issues with the finance CFO.

The accounts receivable and accounts payable clerks usually do not deal directly with the financial controls of the company. The services they provide are mostly duties done by a financial control officer. In most cases, this person is responsible for creating policies for approving the invoices and disbursing the payments. They also prepare reports and make recommendations as to what should be done with the money that has been collected from the customers.

The financial strategies that the service management accountant develops and implements are usually to ensure that the company does not spend more than it earns. They are also responsible for ensuring that the accounts receivable that the company receives is recorded accurately and in an accurate manner. If the financial strategies are not implemented correctly, the company runs the risk of not receiving the payments that it owes its customers.

For companies with a large number of accounts receivable, it may be necessary for the manager or CFO to hire a team of accounts payable processors. The processor performs the functions of creating new invoices and finding the appropriate processors for processing them. They then submit the bills for payment to the appropriate accounts. If the bills for payment sent out by the processor are not processed within the time period specified by the finance manager, the manager has the authority to issue refunds to the customer. This refund amount is paid by the finance CFO to the processor for expenses incurred on the account.
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