Finance department is a core department in an organization, generally endowed with an oversight responsibility for the effective management of a company’s or an organization’s money. The vital functions performed by the department encompass, financing business activities, recording transactions, developing budgets and reporting financial results, and these facets are well enunciated in Chakraborty’s article. Besides, this paper reviews some of the key functions performed by qualified personnel in the finance department, in conjunction to the principal roles of the department. Also, it reviews, functions delineated in Chakraborty’s article, in relation to the assignment and duties allotted in the department during any internship period, taking into consideration, similarities, discrepancy, and the emerging trends in the finance department function.
The article is largely based on the chief activities of a finance department, and Chakraborty (2011) depicts the practicalities of the department as business finance. According to Chakraborty (2011), financing and investments are portrayed as the core activities of the business finance. Under investments, the finance team is primarily involved in the finding of investment options for the company, where as in financing; the team is in the quest for obtaining funds for the company. Other indispensable activities foregrounded in the article include; accounting, which keeps track of all monetary transactions, payroll, which largely handles the salary employment of the employees of an organization, and billing, a sub department in an organization that attends to the billing processes and prepares and itemized bill.
In the article, Chakraborty (2011) explains the key functions of the finance department, which, indubitably, are precise and up to the standard of the requirements of a finance department of any company or organization. Chakraborty (2011) describes the functions of the department as investments and financing, which constitute the main activities of business finance, and accounting, payroll, and billing, which contribute to the additional functions of the department. The spotlighted functions by Chakraborty (2011) in the article are analogous to Tennent (2008) assertions on the functions and roles of the finance department, which entail; managing the finance of a company through financing, billing and accounting, and adding essential values to the company through cost analysis, trends, investment appraisal and business plans.
Further, Chakraborty (2011) in his article delineates structure and the general roles of each staff member of the finance department. Staff members in the accounting section are in charge of keeping track of all monetary transactions, while the ones in the payroll, handle, salary payments to the employees of the company, inclusive of calculation of bonuses and salary increase (Chakraborty, 2011). Similarly, the structure and organization of the finance department is also well enounced by Lasher (2010), who affirms that the finance department consists of accounting section and treasury section. The staffs in the accounting section are predominantly involved in keeping records designed to portray the company’s operations, also generate financial statements (Lasher, 2010). On the other hand, the staffs in the treasury section are obliged to analyze financial reports, results, check on investments, raise money and handle relationships (Lasher, 2010). In the same light, the roles played by each staff members, concurs with the duties and assignments given to interns during their internship in the finance department; cost analysis, rate studies, preparation of reports and financial statements, development and implementation of goals and maintenance of accounting records.
Chakraborty (2011) in his article has also stated that for an efficient running and functioning of a company or organization, management of the business finance should be effectual and remarkably perfect. However, he has never stated the various ways in which the management of the business finance can be made effective, which is a particularly crucial facet in understanding the functionalities of the finance department. In conjunction to this, Tennent (2008) avows that for adept management of the finance department, the company should incorporate the latest technology in running of the department, and this entails the use of the latest computer programmes and software that will enhance correct and accurate entry, manipulation and analysis of financial data. As well, employment of qualified staff with relevant is equally beneficial for effective management of the business finance. In tandem to this, Chakraborty (2011) has not distinctively described the structure and organization of the finance department, thus making it difficult to outline the clear cut roles of the finance team.
Concisely, understanding the structure and organization of the finance department, and its functionalities, enhances proficient management of finance of a company, amounting to avid profits. Conventionally, the article also elaborates the functionalities of business finance exceptionally well, and it is synchronal to various literatures that pertain to finance department. Moreover, the vocabulary used in writing of the article is also simple and clear, hence making it appealing to read.
Chakraborty, R. (2011). Functions of Business Finance. Retrieved from http://ezinearticles.com/?Functions-of-Business-Finance&id=6520081
Lasher, W. (2010). Practical Financial Management (6th Ed.). Mason, OH: SOUTH-WESTERN, Cengage Learning.
Tennent, J. (2008). Guide to Financial Management. London: Profile Books, Ltd.