The main areas in a finance department include:-
Book keeping - Years ago all financial transactions within a business were recorded by hand into thick books called ledgers. Nowadays these records are usually kept on a computer.
Creating balance sheets and profit and loss accounts - At the end of each financial year, statements are required to be produced. Trial balances are taken from the ledger entries and are used to create a balance Sheet which shows the assets and liabilities of the business at the year end.
Records of purchase and sales are also totalled up to create a Profit and Loss account.
Providing management information - On-going financial information is required by managers to enable them to make better decisions in regards to their business. They are then able to decide if it is worthwhile to switch to making an alternative product.
Wages - This section is responsible for the payment of all wages and salaries of employees. The wages section also organises collection of income tax and national insurance for the Inland Revenue.
Raising of finance - The finance department are also responsible for the way in which a company raises finance, for example through loans and what the repayment of interest is on that finance. The finance department will also supervise the payment of dividends to shareholders