An Overview of Financial and Administrative Departments Organization

Organizing a company’s management hierarchy is crucial to ensuring success, accountability, and continuity. As businesses expand, those in the top management position should begin defining more clear-cut roles for each of them. 

One of the most important features in an organizational hierarchy is the Finance arm of the business.

Leadership in Finance

There are several departments that sit under the umbrella of the Finance department. At the top of them all would be the Chief Financial Officer (CFO), who is responsible for creating a financial strategy for the company. 

They track company revenues and expenses, take care of the annual budget, and analyze the company’s financial data. The CFO reports to the CEO (Chief Executive Officer), but may also sit on the Board of Directors.

Apart from that, the CFO is also the one managing the rest of the executives under them, who in turn supervise the staff handling the day-to-day financial matters of the business. 

Management Accounting

The main role of management accounting is to prepare budgets, control costs, track expenses and revenues, and manage staff under its department. Their daily experience handling these sorts of data is relevant especially in helping top management create well-informed, data-driven decisions about the company’s development.

Financial Accountant

A financial accountant is tasked with reviewing, preparing, and analyzing financial reports frequently. They are expected to be armed and ready with any information related to the company’s financial activity and standing, enough to be ready on a short notice to satisfactorily respond to queries from external auditors, as needed. 

They are responsible for handling and interpreting financial data for every monthly, quarterly, and annual accounting period, which they then make a report of, to hand over to the CFO for further analysis. 

Other sub-departments completing the FInance department of a company include Accounts Payable, Credit Controller, Accounts Clerks, and Internal Auditor. All of them work individually towards the common goal of ensuring the company’s financial health. 

How can a Consulting Group Help

 Structuring an organization can be tricky, especially for the uninitiated. A consulting firm like Koma Consulting Group can help you clarify the roles of each person and department for a more efficient leadership and management.