The roles of the accounting and finance department, who are the key players and are the key positions that you’ll find across most business accounting units.
The Roles & Responsibilities of the Accounting & Finance Department in the Woodcraft Centre limited are as follows:
• Money out – making payments and keeping the bills paid.
• Money in – processing incoming payments.
• Payroll – make sure everyone gets paid (including the government).
• Reporting – preparing financial reports, e.g. P&L, Balance sheets and budgets.
• Financial Controls – to avoid errors, fraud and theft.
Accounting & Finance Department Responsibilities in Detail:
1. Accounts Payable (money out) – In order to maintain great relationships with vendors making sure that everyone gets paid on time is a vital role. The role of the accounting department includes keeping an eye on opportunities to save money, for example, determining if there are discounts or incentives available for paying certain vendors more quickly. At the very least, AP should be scheduled to assure that the least amount of money has to go out per payment, i.e., no late payment charges!
2. Accounts Receivable and Revenue Tracking (money in) – Another critical duty of the accounting department is to account for and track receivables, including outstanding invoices and any required collection actions. Accounts receivable is responsible for creating and tracking invoices. The responsibility here includes assuring that customers pay those invoices on time, so a system of friendly reminders is crucial.
3. Payroll – Payroll is a critical function of the accounting department and includes making sure all employees are paid accurately and timely. In addition, proper tax is assessed and tax payments are on time with state and federal government agencies.
4. Reporting and Financial Statements – The primary reason you collect data properly in your accounting software is to prepare financial reports that can be used for budgeting, forecasting and other decision making processes. In addition, these and other reports are needed for communication to investors, banks and other professionals that play a role in the growth of your business.
5. Financial Controls – Financial controls include reconciliations, dividing the responsibilities and following the GAAP standards of accounting principles, all of which are implemented with view toward compliance, fraud and theft prevention. The role of the Controller is to ensure procedures are set up properly to manage that process without errors.
Sr. Finance Manager (or SFM) – The Accounting & Finance Department is currently headed by the Sr. Finance Officer (or SFM) and he oversee the financial strategy, health of the business, and manage the rest of the financial department and help businesses navigate through growth stages and downturns. With his knowledge of company finances, they help senior Management to understand the financial impact of real-time decisions to ensure the fiscal success of the business. Their duties include financial planning, reporting and controls, short and long term business strategy, investments, hedging, mergers and acquisitions, cash management, internal risk management, corporate finance, auditing and accounting.
Accounting Manager – An accounting manager is responsible for a company’s accounting activities that include maintaining and reporting on both the cost and financial sets of accounts but does not handle or negotiate. The accounting manager establishes and enforces the accounting principles based on statutory requirements and auditing policy.
Finance & Accounts Department
Woodcraft Centre Limited