Larger businesses have functional areas with specific roles. The finance function manages a business’ finances and helps with decision-making. This allows businesses to manage in the modern world.
There are two main purposes of the finance function:
Smaller businesses do not usually have the resources to support a separate finance function. However, larger businesses can afford to employ specialists to oversee how the business spends its money and controls its finances.
The environment in which businesses operate can change quickly. The finance function monitors changes happening internally, within the business, and externally, outside the business. It then observes the impact of these changes on the finances of the business.
One of the most important roles of the finance function is to ensure that all financial records are accurate and kept up to date. If managers use information which is not accurate and up to date, they may make poor decisions.
The range of financial information can be vast, especially in larger businesses. However, the most common forms are: