1. Unit 1b – Functions of Departments
Finance Department

2. The Finance Department
Responsible for all the money in the company.
This will involve:
calculating and paying wages,
paying invoices to suppliers,
receiving payments from customers.

3. Finance Manager In charge of the finance department
Analyses income and expenditure
Discusses/checks budgets, costs, etc with other department heads
Prepares financial information/accounts for senior management

4. Management/Cost Accountant
Financial Accountant
Preparing final accounts
Preparing budgets and forecasts
Management/Cost Accountant
Ratio analysis
Calculation and payment of tax

5. Accounts Supervisor Sending invoices to customers
Processing invoices for payment
Checking the balance on customer accounts
Prepare bank reconciliation statements

6. Finance Admin Assistant
Checks/files invoices
Prepare cheques to suppliers
Count money/cheques received
Sends receipts to customers
Bank cheques/cash
Calculate staff wages
Preparing letters to customers for non-payment
Update spreadsheets – keying in payments received, hours worked by employees, etc

7. Documents used by the Finance Department
Cheques
Invoices
Credit Notes
Statements

8. Invoice The bill that is sent asking for payments for goods delivered.
Details include:
name and address of the seller/buyer
date and order number
details of goods purchased
total price
VAT
discounts offered

9. Statement
The supplier of goods sends a statement to inform the buyer of the total amount owing.
Usually sent at the end of the month and states:
amount owing at the beginning of the month
plus invoices for goods sent during month
less any credit notes for returns
less any payments received during month
final balance (net amount owing at end of the month).