Unit 1b – Functions of Departments Finance Department

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.

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

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

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

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

Documents used by the Finance Department Cheques Invoices Credit Notes Statements

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

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).