Role and Importance of Finance
Finance is very essential to a business as the company need to know how successful it is and accurately balance out the profit with costs.
The Main Roles of the Finance Department includes:
Create and maintain financial accounts – such as how the business trades, profit and loss statements for the business and the list of costs.
Carefully monitor financial records – sales statistics and records of expenses will be kept by the Finance department and also used by other departments as well.
Create and organise internal financial information – this would mostly be done in the surrounding the issues of a budget, which is a financial plan and can help the owners and managers of the business take the best course of actions.
Examine and monitor current financial performance – how the business has performed in trading and the expenses of the company will be analysed mainly using ratio analysis mechanisms and software.
Pay staff an appropriate amount of money (wages) – Staff must be paid for the work they do so organising the payment system is a very essential task for the Finance department to do.
Pay money to lenders – The Finance Department must make sure that all payments are made to organisations the company owes money to.