–<\/p>\n

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\n<\/span>Organization of Finance Functions<\/span><\/b><\/h2>\n

Finance function is the combination of a science and an art. <\/span><\/p>\n

Organization for finance function is an overall management process.<\/span><\/p>\n

Structure of organization for function becomes an outcome of an important firm problem. <\/span><\/p>\n

The ultimate responsibility of the finance function lies (depends on) with the top management. <\/span><\/p>\n

However, organization of finance function differs from firms to firms depending on their respective requirements. <\/span><\/p>\n

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In many organizations, there may be finance executives such as Assistant Manager (Finance), Deputy Manager (Finance) and General Manager (Finance). <\/span><\/p>\n

The designations of the executives are different; they may be as:<\/span><\/p>\n

Chief Finance Officer (CFO)<\/span><\/p>\n

Vice-President (Finance)<\/span><\/p>\n

Financial Controller<\/span><\/p>\n

General Manager (Finance)<\/span><\/p>\n

Finance Officers<\/span><\/p>\n

\n<\/span>Being the finance an important portfolio, the finance functions are entrusted to top management. <\/span><\/p>\n

The Board of Directors normally constitutes a \u2018Finance Committee\u2019 to review and formulate financial policies. <\/span><\/p>\n

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There are two more finance officers; they are treasurer and controller.<\/span><\/p>\n

They may be appointed under the direct supervision of CFO to assist finance director. <\/span><\/p>\n

In larger firms with modern management, there may be Vice-President or Director of Finance.<\/span><\/p>\n

The organization of finance function is represented below:<\/span><\/p>\n

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Finance Director <\/span><\/b><\/h2>\n

Finance director is executive team of a business firm.<\/span><\/p>\n

He\/she is responsible for firm\u2019s financial health. <\/span><\/p>\n

He combines operational and strategic roles.<\/span><\/p>\n

He manages accounting and financial control functions.<\/span><\/p>\n

He establishes a financial strategy for the long-term profitable growth of the business. <\/span><\/p>\n

To fulfill the role, he must have the versatility and talent to meet a continually changing set of circumstances. <\/span><\/p>\n

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Keep in Mind <\/span><\/b><\/p>\n\n\n\n\n

\n According to size and area of the business, there may be more than one finance directors.<\/span><\/p>\n<\/td>\n<\/tr>\n

\n If there are plural, use they in place of he or she.<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n Roles of Finance Director<\/span><\/b><\/h3>\n The overall financial responsibilities are depended on finance director; some important roles are given below:<\/span><\/p>\n Skill and experience <\/span><\/b><\/p>\n Finance manager should have excellent analytic and financial management skills.<\/span><\/p>\n He\/she should have ability to communicate complex financial information to both finance professionals and non-specialists. <\/span><\/p>\n He must be familiar with\u00a0database technologies\u00a0and software for financial analysis and reporting. <\/span><\/p>\n He must be good team players, with management skills to lead the finance department.<\/span><\/p>\n \u00a0<\/span><\/p>\n Control of finances<\/span><\/b><\/p>\n Financial control is a key responsibility of finance director.<\/span><\/p>\n He\/she sets budgets and work closely with different department heads to ensure that income and expenditures remain within target. <\/span><\/p>\n He maintains and controls overall financial transactions and takes responsibility for managing the company\u2019s liquidity.<\/span><\/p>\n \u00a0<\/span><\/p>\n Financial reporting<\/span><\/b><\/p>\n Finance director get prepared quarterly and annual financial statement that present the company\u2019s position.<\/span><\/p>\n He may also prepare an annual report for shareholders; it provides an overview of\u00a0business performance and financial results. <\/span><\/p>\n Finance directors meet journalists, investors, analysts and shareholders to build confidence in the company and update them on financial performance.<\/span><\/p>\n \u00a0<\/span><\/p>\n Financial strategy<\/span><\/b><\/p>\n Finance director works closely with other senior executives to ensure company\u2019s growth.<\/span><\/p>\n He\/she provides financial and commercial perspective. <\/span><\/p>\n He recommends funding sources for investment programs and calculates the return on investment. <\/span><\/p>\n He also evaluates the financial potential and risk of merger and acquisition plans.<\/span><\/p>\n The financial manager needs to look at the\u00a0market trends\u00a0in the industry to provide accurate financial strategy guidance for the company, <\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/b><\/p>\n Controller and Treasurer<\/span><\/b><\/b><\/h3>\n The terms \u2018controller\u2019 and \u2018treasurer\u2019 are used in USA. <\/span><\/span><\/p>\n This pattern is not popular in SAARC countries corporate sector. <\/span><\/p>\n Practically, the controller is known as financial controller.<\/span><\/p>\n He\/she carried out the functions of a Chief Accountant or Finance Officer of an organization. <\/span><\/p>\n Financial controller is an executive rank; he does not control the finance.<\/span><\/p>\n He monitors whether increased funds are properly utilized. <\/span><\/p>\n \u00a0<\/span><\/p>\n Treasurer<\/span><\/b><\/p>\n The treasurer\u2019s functions focus to the liability side of the balance sheet.<\/span>\u00a0<\/span><\/span><\/p>\n The main functions of the treasurer of an organization are to raise funds and manage funds. <\/span><\/p>\n The other functions of the treasures is to forecasting the financial requirement, managing the cash flow, managing credit, flotation of securities, maintaining relations with financial institutions and protecting funds and securities.<\/span><\/p>\n \u00a0<\/span><\/p>\n Controller <\/span><\/b><\/p>\n The controller\u2019s functions focus to the asset side of the balance sheet.<\/span><\/p>\n The main functions of controller are to utilize raised fund properly.<\/span><\/p>\n The other functions of the controller is to provide information to formulate accounting and costing policies, preparation of financial reports, direction of internal auditing, budgeting, inventory control, payment of taxes etc. <\/span><\/p>\n \u00a0<\/span><\/p>\n ***** #EP<\/span>Online<\/span>Study *****<\/span><\/p>\n Thank you for investing your time.<\/span><\/i><\/p>\n Please comment on article.<\/span><\/i><\/p>\n You can help me by sharing this article at your social media platform.<\/span><\/i><\/p>\n \u00a0<\/span><\/p>\n Jay G<\/span>o<\/span>o<\/span>g<\/span>l<\/span>e<\/span>, Jay YouTube<\/span>, Jay Social Media<\/span><\/span><\/p>\n \u091c\u092f \u0917\u0942<\/span>\u0917<\/span>\u0932<\/span>, <\/span>\u091c\u092f \u092f\u0941\u091f\u094d\u092f\u0941\u092c<\/span>, <\/span>\u091c\u092f \u0938\u094b\u0936\u0932 \u092e\u093f\u0921\u093f\u092f\u093e<\/span><\/span><\/p>\n \u00a0<\/span><\/p>\n  <\/p>\n","protected":false},"excerpt":{"rendered":" – \u00a0 Organization of Finance Functions Finance function is the combination of a science and an art. Organization for finance function is an overall management process. Structure of organization for function becomes an outcome of an important firm problem. The ultimate responsibility of the finance function lies (depends on) with the top management. However, organization […]<\/p>\n","protected":false},"author":19997,"featured_media":3538,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1451,1452,11],"tags":[1468,948,1459,1460,1462,1463,1461,1467,1464,1465,1466],"writers":[1301],"yoast_head":"\n