Margie Zaragoza Dimaculangan believes that no business can function without a reliable supply of financing. It is the lifeblood and common denominator of every business and is used to measure its internal and external performance. Accounting and finance are at the heart of every organization. They are responsible for providing the necessary financial management and controls to support all business activities.
To be a good finance director, one must understand all aspects of the business to develop a financial strategy that supports business goals. It will also help you to be more effective as a non-financial leader if you are familiar with the roles and responsibilities of your accounting and finance departments.
You can easily group the principal roles of the finance and accounting departments from Margie Zaragoza Dimaculangan.
Financial accounting
This includes keeping track of all transactions using double-entry bookkeeping and preparing final accounts that meet the regulatory requirements for taxation authorities, stock exchange reporting and statutory reporting. The financial accountant usually performs this function in large and medium-sized organizations. They will usually report to the finance director.
Financial systems
A systems accountant may be employed by medium- to large-sized companies. This person will review and analyze financial information and evaluate existing systems. They are responsible for designing and maintaining financial systems and providing an interface between finance and technology/systems departments. A systems accountant can report to the financial accountant, financial director or management accountant within the accounting and finance function.
Systems accountants assist in the implementation and management of financial system projects. They might also be needed to assist other users with financial information.
Payroll
Paymasters or payroll managers will be required for large organizations. The financial accountant in smaller businesses might handle this task.
Budgeting
A budget accountant may be able to handle budgeting in a large organization. A management accountant may do it in a medium-sized business.
Budgeting involves the financial evaluation of plans and reporting on this, usually every month.
Management accounting
Management accounting involves the analysis and control of financial information to support the day-to-day operations of an organization. A management accountant will be responsible for the accounting functions of most medium- and large-sized businesses. They will report to financial directors.
Financial accounting and management accounting overlap because many management accounting reports are based on financial accounting records. Management accounts will show the actual expenditure figures. This information is taken from financial accounting records. Sometimes, financial accounting and management accounting can be integrated. This is the case with the fully integrated costing system, where financial accounts are structured to provide direct cost and management information.
