Finance
The finance department is responsible for managing the money coming into and going out of the business. They will deal with all the financial aspects of the business such as paying suppliers, paying staff wages and receiving payments from customers.
The main functional activities carried out by the finance department are:
- raising finance
- preparing budgets
- preparing final accounts
Raising finance
It is the responsibility of the finance department to ensure a business has enough money to pay bills. To do this they may be required to raise extra finance. This can be done through applying for bank loans or grants.
Preparing budgets
It is important for a business to plan ahead so they can see how much money is expected to come into and out of the business. To do this a business uses a budget which is prepared by the finance department.
Preparing final accounts
Final accounts are required by all businesses to see how much profit or loss has been made and what the business is worth. The final accounts are prepared by the finance department.