Function of Finance Department with Diagram

Organizational Structure, Role, Function of Finance Department

In a small organization, the accounts manager can manage the finance of the firm. However, in large firms, the finance function may be organized as follows:

Organizational structure of finance department are given in the diagram below. ↓

Image credits © Manoj Patil.

Function of Finance Department

Organizational structure, role, and Function of finance department are given in the diagram below. ↓

Image credits © Manoj Patil.

Function of finance department are divded into two groups: ↓

1. Functions of Controller
2. Functions of Treasurer

Functions of controller in financial department

Functions of Controller are given in the diagram below. ↓

Image credits © Manoj Patil.

Functions of controller and accountant general department are: ↓

1. Planning and Budgeting,
2. Reporting and Analysis,
3. Internal Audit,
4. Tax Administration,
5. Economic Appraisal.

The functions of controller are enumerate below. ↓

1. Planning and Budgeting

The finance controller is responsible for budgetary planning and budgeting. The various sources and application of funds are decided in the financial plan, and different budgets are prepared for effective control.

2. Reporting and Analysis

The finance controller has to report to vice president about the analysis of actual performance with the standards fixed. The vice president then takes necessary action.

3. Internal Audit

Internal audit is undertaken by the finance controller so that he can have a proper control on monetary matters.

4. Tax Administration

Tax administration is also done by the finance controller. He has to ensure the implementation of tax matters are done within the policies which are framed.

5. Economic Appraisal

The finance controller needs to appraise the economic, social and government factors affecting the business.

Functions of Treasurer in a Organization

Functions of treasurer are given in the diagram below. ↓

Image credits © Manoj Patil.

Functions of treasurer are: ↓

1. Provision of Finance,
2. Investments,
3. Investor Relations,
4. Credit and Collections,
5. Insurance and Banking.

Roles and functions of treasurer are discussed below.↓

1. Provision of Finance

The finance treasurer has to negotiate with various parties like financial institutions, banks, etc. to procure finance. He is responsible for the arrangement of finance required by a firm.

2. Investments

The finance treasurer has to plan and implement the investment of company's funds in various schemes such as corporate shares and debentures, government securities and bonds, etc.

3. Investor Relations

The finance treasurer has to maintain good relations with shareholders and creditors of the company who invest in company's securities.

4. Credit and Collections

The finance treasurer frame's credit policies and also monitors the same. He in addition has to administer the collection of accounts receivable from debtors.

5. Insurance and Banking

For various banking transactions and insurance coverage finance treasurer is responsible. He has to arrange everything as per the requirements.