Tasks and functions of the financial department of the enterprise

It is difficult to manage an enterprise, and one leader cannot do it. For this reason, numerous departments are created, one of the most important is financial. We can say that he is the heart of the whole organization. Consider the goals and functions of the financial department in more detail.

What does he do?

Each department is endowed with certain responsibilities, as for the financial department, they are as follows:

1. Financial control. This is the most important feature. Employees monitor the implementation of plans, as well as their formation. The financial department should not only deal with analysis and accounting, but also control the execution of business processes in the organization.
2. Money management. The second function of the department is the financial management of the enterprise. In addition, this includes monitoring the status of settlements and the creation of a payment calendar. These responsibilities cannot be underestimated, because the financial department also holds onto them.
3. Conducting tax and accounting and its organization. There is no need to explain anything, and so everything is clear.

It is important to note that some functions may be similar to the duties of the chief accountant, but this is not entirely true. It is necessary to clearly distinguish between them.

Differences

The chief accountant is responsible for maintaining tax and regulated accounting, which is fully consistent with the requirements of the law. He is obliged to draw up tax and accounting reports in time, reflect the facts of the organization’s economic activity on accounting registers.

The functions of the financial and economic department, or rather its head, are that he plans the activities of the company, the financial result. Moreover, the boss must make sure that his actions do not contradict the legislation of our country, which is constantly changing. The direct responsibility of the financial director of the organization is tax planning.

How do the chief accountant and financial director interact, because their responsibilities are similar? So quickly, this serious question cannot be answered. The accountant, according to the law "On Accounting", must obey the general director of the enterprise, but he is also included in the area of ​​responsibility of the financial director, which means that he must follow orders. The faithful will be subject to both.

By the way, most often the responsibilities of the department do not limit the tasks that the director of the service faces.

The concept

We have already noted that the functions of the financial and economic department are very extensive, but have not yet defined this section. In fact, everything is simple. FEO - a structural entity that is engaged in the performance of managerial functions in the organization.

The number of employees of the entire enterprise and specifically the financial department is affected by the nature of the activity performed, as well as the legal form.

Financial turnover, the number of payment documents for settlements with partners depend on the production volume and nature of the organization’s activities. This includes suppliers, customers, lenders, private banks, and the budget itself. The number and composition of FEO employees depend on how large the cash transactions are.

In the previous paragraphs, we already mentioned that the financial control department is planning a budget. In addition, he carries out analytical and operational activities.

About finance

What is meant by the budget of the studied department? Experts note that this is the case:

1. On the analysis of own needs of the enterprise turnover.
2. On the planning of loans and finances. In this case, all necessary expenses must be taken into account.
3. On identifying funding opportunities for the organization.
4. On participation in the preparation of a business plan.
5. On the development of capital investment projects, taking into account all the features.
6. On the design of cash plans.
7. About participation in the planning and implementation of the organization’s products.
8. On the analysis of profitability and associated costs.

Thus, the budget is the entire cash flow produced by the department.

Operational work

The financial control department carries out activities in this direction. The service is primarily concerned with the fact that it performs different tasks. Among them:

1. Ensuring replenishment of the budget through payments at the appointed time. This also includes control over the payment of payments on loans, both long-term and short-term, the payment of salaries to employees on time, all cash transactions.
2. Payments to suppliers for work or goods.
3. Coverage of costs included in the plans.
4. Registration of loans under contracts.
5. Daily monitoring of the sale of products, profits from it, and other sources of income of the organization.
6. Monitoring the implementation of the requirements of the material plan and the entire material situation of the organization.

But the functions of the financial and economic department do not end there.

Control and analytical work

It has already been said above that the FEO is committed to constantly monitoring cash receipts. This obligation is considered one of the most important functions of the financial and economic department. But it is not the only one, it is equally important to calculate the feasibility of using the enterprise budget and borrowed funds. The latter include bank loans.

Previously, all FEO duties were performed by accountants. But over time, everyone became responsible for their projects. This happened because the department under study had more tasks, which means that the time has come to branch out into an independent service. More tasks became after non-profit organizations and various legal forms of the latter appeared. It also left a mark on the fact that state and municipal property began to be transferred to private hands, and the growth of independence of the subjects was also intensified.

If the enterprise is small, then the accountant takes over the functions of the financial department of the organization. This is due to the fact that the company has few employees and the turnover of funds, respectively, is small. But when it comes to a large organization or an open or closed joint-stock company, the functions of the department are performed by the service itself. This is due to the large turnover of funds and numerous employees.

Financial management

You can often hear this term, but it is not always clear what it is about. This is called the management of all profits and expenses. It is necessary in order to use the funds from the enterprise’s budget and the funds raised from outside to increase the organization’s profit in the most efficient way.

The functions of the financial department of the enterprise include analysis of reports on several indicators, and at the same time, a system for forecasting income in the future. FM develops the most profitable strategy and tactics for solving monetary issues. It is due to this that the financial service of the enterprise is indispensable.

The responsibilities of the financial department of the enterprise are very diverse, as you have already seen. But the service was created primarily in order for the organization to flourish and its profit to grow.

What is financial work?

The functions and tasks of the FEO are closely intertwined, and therefore the organization’s management entrusts the service employees with:

1. Business finance.
2. Rational planning and use of enterprise budget funds and borrowed money.
3. Partnerships with business and financial-credit entities.
4. Ensuring budget revenues on time, payments to banks, payment for the work of employees and suppliers.

To summarize, it turns out that the financial service is engaged in the circulation of finance, while strictly planning where to spend the money. Partnerships can also be added to increase commercial profits.

If the FEO is not

With the functions and tasks of the financial department, it is more or less clear, we turn to the analysis of the situation when such a service is absent.

In the case of poorly managed management accounting, the director receives data on losses and profits only after the month of closing of the accounting period. That is, the boss cannot influence the situation in any way, which adversely affects the work of the organization. How to be?

It is necessary to plan everything correctly, it is desirable that the plan was for every week. In this case, it is not necessary to wait for accounting readings, you can independently control costs, avoiding unnecessary expenses.

Proper planning will be a great tool for business prosperity.

Department Structure

Like any service, the financial department has its own structure. It depends on the scale of the organization, production volumes, activities and goals of the enterprise.

The division is divided into the following units:

1. Bookkeeping. The main function is accounting, maintaining and reporting financial statements. This also includes a report on expenses and profits, preparation of general reporting in accordance with requirements and legislation.
2. Department of analytics. These employees monitor the general condition of the enterprise and analyze financial data. Preparation of an annual financial report for both the company and the stock meeting. The analytical department is engaged in the design of the investment fund and the financial performance of the organization.
3. Financial planning. The functions of the planning and financial department are to carry out the development of projects of different validity periods and manage the organization’s budget.
4. Tax planning. Employees are required to develop the correct tax policy, prepare reports and tax returns, submit documents to certain authorities. Employees are also responsible for ensuring that taxes are paid in full on time. Also, the calculations of the main budget and other financial sources should be verified.
5. Department of Operations. Service employees interact with debtors and creditors, banks and other financial organizations. Employees of the department control all small groups of workers regarding tax, payment and settlement discipline.
6. Currency Control and Securities Section. The functions of the financial control department also differ, and this is natural, because each unit carries out its work. Here employees form a package of securities, control their movement. They make sure that all financial transactions are carried out in accordance with the legislation of our country. It turns out that the company rests precisely on this department.

How many chiefs of the finance department, so many opinions about the structure of the service. Some decide to adhere to the classical scheme, others recruit departments in accordance with the goals of the enterprise.

Staff

If we found out the functions of the financial department of the administration and other units, then we will proceed to the analysis of employees.

Service includes:

1. The controller.
2. Treasurer.
3. Chief accountant.
4. Director of financial estimates.
5. The auditor.
6. Administrator or Tax Manager.
7. Director of Planning.
8. Finance Committee.

Consider each employee in more detail.

Who is the controller?

We examined the main functions of the financial department, we will switch to employees. What does the controller do? The employee is required to maintain control within the department. He is also authorized to develop various cost accounting strategies to increase production profitability.

The employee transfers all the information received to the top: to the general manager, vice president of the company, board of directors. He is also responsible for the development of financial estimates.

The official is obliged to analyze the financial situation in the organization, assess the state, predict further events, propose those or other options that will only increase profitability.

In the corporation, the employee is appointed to the post of controller by the board of directors, while the duties are fixed in the charter of the organization. The appointment should be supported by the president of the company along with financial committees.

What is the treasurer doing?

The treasurer monitors the performance of the functions of the financial support department. He also works with enterprise cash and securities. All monetary operations, whether it is transfer, collection, investment, repayment or loan of finance, are carried out by the treasurer. He reports to the vice president or president of the company. It is noteworthy that the latter only in exceptional cases.

The employee interacts with banks and controls the credit and cash operations of the organization. In order to correctly predict the situation with finances, the treasurer works in tandem with the director of financial estimates. Sometimes the controller is connected.

The functions and tasks of the financial support department, at first glance, seem similar to other units, but this is only an illusion. The same thing happens with the duties of the treasurer: if you dig deeper, then there will be fundamental differences in the apparent similarity.

The treasurer is empowered to confirm with signature all the check documents of the organization, and it doesn’t matter whether it is a large sum or a small sum. We can say that he manages the cash register and the amounts. Or subordinates do it with his knowledge.

Sometimes the treasurer is also the secretary who signs invoices, contracts, mortgages, certificates and other financial documents.

The treasurer plays an important role in the management system of the organization, but it is important to remember that he reports to the vice president.

Duties of the chief accountant

We said above that the functions of accounting and the finance department are very similar. Let's talk about those responsibilities that bind them. What does the chief accountant do? He has almost the same responsibilities as the controller, with only a small clarification - the chief accountant is subordinate to the latter, which means that his functions are less extensive.

The employee is responsible for the planning, development and practical implementation of strategies for accounting for costs and expenses of the enterprise. In his competence are methods of effective audit. All of the above are more likely side-functions, while maintaining financial statements and accounting is the main task.

The employee is required to prepare statistical and financial reports. They are subsequently received by the controller, manager or treasurer. But if the organization is small, then the functions of the financial and economic department at the enterprise, namely the controller and the chief accountant, are combined. This does not affect work productivity.

Who is the director of financial estimates?

Large companies have such an employee. He deals with system reporting and financial estimates.

The director of financial estimates reports to the controller, as he has similar functions. The manager is obliged to correctly assess the prospects and opportunities of labor and raw materials. Looking at the information received, the employee will formulate projects on the basis of administrative and production financial estimates that are provided to the enterprise management.

In addition, the director is obliged to formulate the final cost estimates and show them to all department managers and heads.

Another task of the director of estimates is the timely proposal to improve both estimates and production plans.

The auditor is coming to us!

Everyone read the cult comedy at school, so there is an approximate idea of ​​who we are talking about. We note immediately that the auditor does not have to be in the financial department of each company. But if such a position is provided, then you need to know the responsibilities.

The primary task of this employee is to check reports, more precisely, how correctly they are maintained. The auditor does not work alone, he has assistants, representatives of departments and employees of the office.

The inspector can obey anyone: from the supervisor to the board of directors and the president of the organization.

If one boss is dissatisfied with the work done or does not want to accept it, then the auditor can contact a higher manager.

Most often, this particular employee works with accountants who audit the books of the organization.

Sometimes the position of the auditor and the director of estimates are combined.

Tax administrator

We already see that sometimes there is a duplication of functions of financial service departments, but this does not apply to the tax administrator. The employee submits to the treasurer, but the controller can also give him tasks. Indeed, in order to solve tax issues, you need to interact with both the general accounting department and the audit department.

The administrator is obliged to carry out insurance operations. If the company is large, then each type of operation has its own administrator. Well, if the enterprise cannot boast of scale, then one person is responsible for everything.

By the way, in large organizations, the administrator reports directly to the financial committee or president of the company.

Planning director

We have already explained above what functions of the financial and analytical department exist, but do they coincide with the responsibilities of the planning director?

Of course, because this is his direct field of activity. Even if the position as such is not provided for at the enterprise, the functions are performed by some other employee.

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The creation of such a body is decided by the board of directors. Meetings are organized only if there is reason for discussion on the agenda. The chairman can be either a member of the board of directors, a financial manager or the president of the organization. If the company is small, then the committee includes all the responsible officials.

But such activities are not core. In addition to all of the above, the committee performs the functions of the financial security department. After all, it is he who gives consent to large loans, having previously calculated all the risks.

If with posts everything is more or less clear, then we will move on to the lines of activity of the department.

How does it work?

To manage the company, the financial director uses various methods. It could be:

1. Taxation.
2. Lending.
3. Self-financing.
4. Planning.
5. Self insurance. This is what reserve formation is called.
6. Cashless payments system.
7. Insurance.
8. Leasing, trust, factoring, mortgage and other operations.

Any of the methods provides for the possibility of financial transactions.

The work of the department is directed in three directions:

1. Financial management at the moment.
2. Financial planning. This includes expenses, capital, income.
3. Control and analysis of all monetary transactions.

How to develop a budget?

To do this correctly, you need to consider a lot of data. Among them:

1. Forecasts and profitability information for a service, product, or job.
2. Fixed and general costs. Analysis needs to be done for each individual product, because this is the only way to determine profitability.
3. Variable production costs in each product group.
4. Forecast for changes in the organization’s assets, investment sources, turnover indicators, profitability of turnover assets.
5. Tax solvency of the company, loans, deductions of funds to extrabudgetary organizations.
6. Profitability forecast for barter work, reporting after profit analysis.
7. General situation in the organization. This may include depreciation of equipment, the composition of certain funds, their profitability and the percentage of renewal.

To successfully manage the company's budget, you need to consider the following:

1. Using accounting and reporting methods.
2. Analysis of the potential of the company.
3. Development of a funds management system.
4. Accounting staff structure.
5. Preparation of budget funds for use and reporting on them.

First, they appoint a director for the budget, who brings everything to life. The employee is responsible for coordinating the activities of substructures and services of the enterprise.

If the organization has a budget director, then he is the head of the financial committee.

Regulatory document

For any field of activity there is a law. In our case, this is the "Regulation on the financial department of the enterprise." It fixes all the important aspects of personnel management and document management. The document is being developed by the finance director.

Component Provisions:

1. Organizational and functional structure of the financial service. It is represented by a block diagram that best represents the structure of the financial department with all departments.
2. The number of staff and structures of the financial department. It is expressed in the table, where all departments are indicated, the number of employees, officials.
3. The main tasks and target areas. The goals and objectives of each department depend on the development strategy of the organization.
4. Matrix of functions. A table containing function names vertically. Horizontal written are the names of employees of organizational units and managers who are responsible for the performance of a particular function. Using the table, you can easily track the workload of each unit and redistribute it.
5. The order of interaction of employees of the financial department. Usually establish internal order between employees of one department and between several departments of the financial service. A separate external procedure is established that governs interaction with public or private organizations, customers. The basis is the structural feature of the enterprise, the tasks and goals of the departments, as well as the traditions of the company.
6. Settlement of disputes and conflicts. If a conflict arises, an appeal must be filed. To do this, we have developed our own chain of "general director - director of finance - head of department - employee." The same scheme applies to questions from ordinary employees. By the way, questions may concern tasks, decisions, rewards, compensations, as well as various proposals that will improve the profitability of the enterprise.
7. Setting indicators to measure the performance of the financial service. This paragraph indicates the indicators, compliance with which indicates the successful work of the department. It is important that the indicators are specific and can be measured. If the formulations are vague, then they cannot serve as a kind of measure.
8. Final provisions. Here are the main requirements for the compilation of these Regulations, the timing of acceptance by the employees of the departments, storage rules. Consent with the Regulation must be given by the general director of the organization and the personnel department.

As you can see, the work of the enterprise is accompanied by organizational difficulties that must be overcome. But a person who knows the functions of the financial department of an enterprise is not afraid of any obstacles.