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Tasks and functions of the financial department of the enterprise
Tasks and functions of the financial department of the enterprise

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

What does he do?

Financial department

Each department has specific responsibilities, as for the finance 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 to manage the finances of the enterprise. In addition, this includes monitoring the status of mutual settlements and creating a payment calendar. These responsibilities should not be underestimated, because they are the mainstay of the finance department.
  3. Tax and accounting and its organization. There is no need to explain anything, and that's itunderstand.

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


The chief accountant is responsible for maintaining tax and regulatory accounting, which fully complies with the requirements of the law. He is obliged to timely generate tax and accounting reports, 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 company's activities, financial results. 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 duties are similar? This serious question cannot be answered so quickly. 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 his orders. The faithful will obey both.

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


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 is a structural formation thatis engaged in the execution 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 activities carried out, as well as the legal form.

The 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 depends on how large-scale cash transactions are.

In the previous paragraphs, we have already mentioned that the financial control department plans the budget. In addition, it carries out analytical and operational activities.

About finance

Financial report

What should be understood as the budget of the studied department? Experts note that in this case we are talking about:

  1. About the analysis of the company's own turnover needs.
  2. About planning loans and finances. All necessary expenses must be taken into account.
  3. On identifying opportunities to fund the work of the organization.
  4. On participation in the preparation of a business plan.
  5. On the development of capital investment projects, considering all the features.
  6. About designing cash plans.
  7. On participation in the planning and implementation of the organization's products.
  8. About profitability analysis and related costs.

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

Operational work

Financial control departmentis working in this direction. A service is primarily concerned with performing various tasks. Among them:

  1. Ensure budget replenishment through payments at the set time. This also includes control over the payment of payments on loans - both long-term and short-term, the issuance of salaries to employees on time, all cash transactions.
  2. Paying suppliers for work or goods.
  3. Cover for costs included in plans.
  4. Processing loans under agreements.
  5. Daily control over the sale of products, profits from them, and other sources of income for the organization.
  6. Control over 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 constantly monitoring cash receipts. This duty is considered one of the main 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 company's budget and borrowed funds. The latter include bank loans.

Earlier, 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 it was time to branch off into an independent service. More tasks became after non-profit organizations and different organizational and legal forms appearedthe latter. The fact that objects of state and municipal property began to be transferred to private hands also left a mark, and the growth of the independence of subjects has intensified.

If the company is small, then the accountant takes over the functions of the financial department of the organization. This is due to the fact that there are few employees at the enterprise 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 budget of the enterprise and attracted from outside to increase the profit of the organization in the most efficient way.

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

The duties of the financial department of an enterprise are very diverse, as you have already seen. But the service was created primarily to ensure that the organization prospered and its profits grew.

What is financial work?

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

  1. Financing of business activities.
  2. Rational planning and use of enterprise budget funds and borrowed money.
  3. Maintaining partnerships with economic and financial and credit entities.
  4. Ensuring budget receipts on time, deductions to banks, payment 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 funds. You can also add partnerships here to increase commercial profits.

If there is no FEO

The work of the financial department

With the functions and tasks of the financial department, everything is more or less clear, let's move on to analyzing the situation when there is no such service.

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

You need 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 reports, you can independently control expenses, avoiding unnecessary expenses.

Proper planning will be a wonderful 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 department is divided into the following divisions:

  1. Accounting. The main function is accounting, maintenance and reporting of the balance sheet. This also includes a report on expenses and profits, preparation of general reporting in accordance with the requirements and legislation.
  2. Department of analytics. These employees monitor the overall he alth of the enterprise and analyze financial data. Preparation of the annual financial report both for the enterprise and for the shareholder meeting. The analytical department deals with the design of the investment fund and the financial performance of the organization.
  3. Financial planning. The functions of the planning and finance department are to carry out the development of projects of different duration and manage the budget of the organization.
  4. Tax planning. Employees are required to develop a correct tax policy, draw up reports and tax returns, and submit documents to certain authorities. Employees are also responsible for ensuring that taxes are paid in full on time. Calculations of the main budget and other financial sources should also be reconciled.
  5. Operations department. 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 are different from this one, and this is natural, because each department does its job. Here, employees form a package of securities, managetheir movement. They make sure that all financial transactions take place in accordance with the laws of our country. It turns out that the company is based on this department.

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


If we have clarified the functions of the financial department of the administration and other departments, then we will proceed to the analysis of employees.

Service includes:

  1. Controller.
  2. Treasurer.
  3. Chief Accountant.
  4. Directors of Financial Estimates.
  5. Auditor.
  6. Administrator or tax manager.
  7. Planning directors.
  8. Finance Committee.

Let's look at each employee in more detail.

Who is a controller?

Compilation of a report

We have covered the main functions of the finance department, let's switch to employees. What is the controller doing? The employee is required to supervise within the department. Also authorized to develop various cost accounting strategies to increase the profitability of production.

The employee passes all the information received upstairs: to the general manager, vice president of the company, and the board of directors. He is also responsible for developing financial estimates.

An official is obliged to analyze the financial situation in the organization, assess the state, predict further events, offer certain options,which will only increase profitability.

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

What is the treasurer doing?

The treasurer oversees the performance of the functions of the financial department of the provision. He also works with company cash and securities. All monetary transactions, whether it is a transfer, collection, investment, payment or loan of finance, is 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. To correctly predict the situation with finances, the treasurer works in tandem with the director of financial estimates. Sometimes a controller is connected.

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

The Treasurer is empowered to sign all the organization's checks, whether large or small. We can say that he manages the cash register and the amounts. Or this is done by subordinates with his knowledge.

Sometimes the treasurer is also a secretary who signs invoices, contracts, mortgages, certificates and othersfinancial 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.

Responsibilities of the chief accountant

Calculation of income and expenses

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

The employee is responsible for planning, developing and implementing strategies for accounting for the costs and expenses of the enterprise. In his competence are also methods of effective audit. All of the above are rather side functions, while maintaining financial reporting 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 productivity.

Who is the Chief Financial Officer?

Large companies have such an employee. He is responsible for system reporting and financial estimates.

The director of financial estimates reports to the controller, as he has functions similar to him. The manager is obliged to correctly assess the prospects and possibilities of labor and raw materials. Looking atinformation received, the employee will form projects based on administrative and production financial estimates, which are provided to the management of the enterprise.

In addition, the director is obliged to form the final versions of the estimate and show them to all department managers and heads.

Another task of the cost estimate director is to suggest improvements to both estimates and production plans in a timely manner.

The auditor is coming to us

Auditor is

Everyone read the cult comedy at school, so there is a rough idea of ​​who will be discussed. We note right away that the auditor does not have to be in the financial department of each enterprise. But if such a position is provided, then you need to know the responsibilities.

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

The inspector can report to anyone: from the controller 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 turn to 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 can already see that sometimes there is duplication of functions of finance departments, but this is notconcerns the tax administrator. The employee reports to the treasurer, but the controller can also give him tasks. After all, in order to resolve 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 the 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 duties 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, some other employee performs the functions.

The position of director is considered prestigious, because he interacts directly with the company's managers. As a rule, the chief accountant or cost estimate director can rise to the position of planning director.

An employee develops financial plans, determines target areas in various areas.

If a decision is made to purchase a new branch or liquidate an enterprise, the opinion of the planning director must be taken into account. It assesses not only the economic situation of the organization, but also calculates the state of the market in the future and the present.

The functions of the head of the financial department and the director are very similar, but similarthe matter does not end. In fact, the planning director is engaged in the work of all the above employees, the same rule works in the opposite direction. If the position is not provided for by the scale of the enterprise, the duties are shared between the controller, the head of the FEO and the cost estimate director.

Naturally, the functions of the head of the financial and economic department will be wider than other employees. After all, management is primarily responsible.

Finance Committee

Finance Committee

Which committee did we mention in the title? What is he for, what is he in charge of? Recently, he has acquired the functions of a financial control department, solving the most important strategic tasks. In other words, every serious decision at the enterprise is the result of the work of the financial committee.

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

But such activity is not the main one. In addition to all of the above, the committee performs the functions of the financial security department. After all, it is he who agrees to large loans, having previously calculated all the risks.

If everything is more or less clear with the positions, then let's move on to the activities of the department.

How does it work?

To manage the enterprise, the CFO usesdifferent methods. It could be:

  1. Taxation.
  2. Lending.
  3. Self-financing.
  4. Planning.
  5. Self-insurance. This is what is called the formation of reserves.
  6. Cashless payment system.
  7. Insurance.
  8. Leasing, trust, factoring, collateral 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. Management of financial turnover at the moment.
  2. Finance planning. This includes expenses, capital, income.
  3. Control and analysis of all monetary transactions.

How is the budget developed?

To do it right, you have to take into account a lot of data. Among them:

  1. Forecasts and information about the profitability of a service, product or job.
  2. Fixed and general costs. The analysis must be carried out for each individual product, because this is the only way to find out the profitability.
  3. Variable production costs in each product group.
  4. Forecast for changes in the organization's assets, sources of investment, turnover indicators, profitability of turnover assets.
  5. Tax solvency of the company, loans, allocation of funds to non-budgetary organizations.
  6. Forecast profitability of barter work, reporting after profitability analysis.
  7. The general state of affairs in the organization. This includes wear and tear of equipment, the composition of some funds, their profitability and the percentage of renewal.

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

  1. Using accounting and reporting methods.
  2. Analysis of the firm's potential.
  3. Developing a fund management system.
  4. Accounting for personnel structure.
  5. Preparation of budget funds for use and reporting on them.

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

If an organization has a budget director, it is he who heads the financial committee.

Regulatory document

Every field of activity has its own law. In our case, this is the "Regulations on the financial department at the enterprise." It contains all the important points of personnel management and record keeping. The document is being developed by the finance director.

Components of the Regulation:

  1. Organizational and functional structure of the financial service. Presented as a block diagram that best represents the structure of the finance department with all departments.
  2. The number of staff and structures of the financial department. Expressed in a table that lists all departments, the number of employees, officials.
  3. Main tasks and targets. The goals of the enterprise and the tasks of each department depend on the development strategy of the organization.
  4. Matrix of functions. Table containing function names vertically. The names of employees of organizational units and managers who are responsible for the performance of a particular function are written in the horizontal. By usingtables, you can easily track the workload of each department and redistribute.
  5. The order of interaction between the employees of the financial department. Usually, internal order is established between employees of one department and between several divisions of the financial service. Separately, an external procedure is established that regulates interaction with public or private organizations and clients. 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. Dispute and conflict resolution. If a conflict arises, an appeal must be filed. For this purpose, its own chain "general director - director of finance - head of department - employee" has been developed. The same scheme is applicable in the case of questions from ordinary employees. By the way, questions may relate to tasks, decisions, incentives, compensations, as well as various proposals that will increase the profitability of the enterprise.
  7. Establishment of indicators for evaluating the work of the financial service. This paragraph indicates the indicators, the observance of which indicates the successful work of the department. It is important that the indicators are specific and measurable. If the wording is vague, then they cannot serve as a kind of measure.
  8. Final provisions. Here are the main requirements for the preparation of this Regulation, the deadlines for acceptance by department employees, and storage rules. Consent with the Regulations must be given by the CEO of the organization and employees of the personnel department.

As you can see, the work of the enterprise is accompanied by organizationaldifficulties that need to be overcome. But for a person who knows the functions of the financial department of an enterprise, no obstacles are terrible.

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