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From a general point of view, the Finance Department is the business sector responsible for money . In this case, it is the sector that controls the treasury, accounts payable, accounts receivable, funding and investments of resources.

Its function is to guarantee resources so that the objectives of the company are fulfilled . Thus, it will remain active and competitive in the market. Therefore, in an analogy with the human body, the financial department would easily be the heart. Since it is dependen on it for the company to work or not.

All decisions made by any other sector of the company must necessarily pass through the finance department. That will have a structure and routine dependent on the size and function of the company.

Therefore, each format of the finance department will vary according to the needs of the company. However, there are major functions that every finance department follows to keep the business running. And we’ll list them here.

Read also: How important is cash flow to small businesses?

Treasury

Treasury

Sector responsible for cash flow . In this case, it is the function that makes the daily control of both inflows and outflows of money . Because it is an electronic control, it can also manage bank accounts .

Account management

Account management

In this sector, the care is with all the accounts , be the ones to pay or to receive . In this, management controls the maturity of the company’s financial commitments , to avoid delays and fines for the company.

The industry is also responsible for the money the company receives . This ranges from checking the obligations of customers to whether the tickets issued by the company were paid on time.

Risk and tax management

 

Because it is responsible for market valuation , this sector is responsible for evaluating risks, credit exchange and company operations . Risk management then serves to fairly anticipate them. This allows the right measures to be taken in time to avoid or reduce problems

Tax management, in turn, goes beyond just making the payments. The sector also has the function of preventing the company from spending more than it should with taxes . And it does this by identifying the most favorable tax regime.

Accounting

Accounting

Since the treasury takes care of the cash flow, this sector takes care of the control of the equity and the variations. These assets are what the company has as assets and liabilities . The assets, in this case, are the assets and rights that the company has , such as real estate, goods, equipment, among others.

While liabilities are the obligations of the company such as debts and accounts payable.

The relationship between these two types of equity is the result of the company’s situation. That is, whether she made a profit or loss in that month or year. Therefore, every record made by this sector of the financial department is crucial to the company’s decision-making.