Week 1 Role of the Finance Department

Week 1: Lecture

The Role of the Finance Department in an Organization

simplified_organizational_chart.jpgThe financial management function is usually associated with a top officer of the firm, often call the chief financial officer (CFO) or Vice President of Finance. The CFO coordinates the activities of the treasurer and the controller.

  • Treasurer’s Office is responsible for managing the firm’s cash and credit, its financial planning, and its capital expenditures.
  • Controller’s Office handles cost and financial accounting, tax payments, and management in formation systems.

In a smaller firm the treasurer and the controller might be the same person and there would be only one office. Here is a diagram of how the finance function is organized in a typical firm. Please note that this is a "simplified organizational chart" meaning, the exact titles and organizational structure may differ from company to company.

How You Fit In?
You may not be finance majors, but as business people of any sort you ought to know what the people in finance are up to, if for no other reason than to be able to assign tasks to them.