What is the wallet of your company?

The business that makes nothing but money is pitiable. However, a company that isn’t managing its earned wealth is indubitably preparing for its non-existent future. Managing and eventually multiplying the present funds is the priority of the company, and the finance department raises its hand in leading this way. The finance department is part of an organization solely responsible for acquiring, managing, and planning funds. Ensuring efficient financial management and pecuniary control adds up to the multi-faceted roles this department is concerned with.

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This department is the possessor of the long lists of companies’ revenues and expenditures. It maintains records of the stakeholders, including creditors, debtors, and investors, and ensures their timely payments. Day-to-day transactions of the business are kept in check by the people in this group.

Remaining out of the budget isn’t the thing a company can afford, and the finance department duly takes care of it. They assist the top management in coming up with a requisite budget. Not only this, but forecasting the revenues and expenditure for the upcoming days is what they don’t forget to do.

Tax being a necessary expenditure can’t be weighed less while managing the funds. In order to resolve every issue regarding the payment of taxes, the finance group hires a group of specialists. It ensures payment of such obligations with minimal effect to the company’s operations as well as the government policy’s framework.

Analyzing the raw accounting entries and turning them into meaningful insights is another task they correspond to. Reporting significant discrepancies and trends in the bookkeeping in conjunction with some non-financial information is one more function this department performs whole-heartedly.

Let it be deciding the budget for every department or being the top management’s direct advisories, the Finance department is the one which controls the overall operations and existence of any company.

Harminder Singh

Originally published at https://globalshala.com.