The activities expected from a finance department cover a wide range from basic

bookkeeping to providing information to assisting managers in making strategic decisions.

What to expect from your finance department will depend largely on factors such as how
much involvement the owner/manager has in the organization.
At the base level, the finance department will be responsible for all the day to day
transactional accounting for the business. This will include the tracking of all transactions

and the management of any government reporting. In very small owner-managed businesses
this role is often filled by a family member with accounting experience. An outside
accounting firm is usually used for annual financial statements and returns. In larger
organizations this role will extend right through to preparing the financial statements with an
external auditor engaged for assurance purposes.
The finance department is also responsible for management of the organizations cashflow
and ensuring there are enough funds available to meet the day to day payments. This area
also encompasses the credit and collections policies for the companys customers, to ensure
the organization is paid on time, and that there is a payment policy for the companys
suppliers. In most organizations there will be some form of forecast prepared on a regular
basis to systematically calculate the ongoing cash needs.