5.1 The role of the finance function

• The Purpose of the Finance Function


  • In a small firm, the business owner usually manages financial tasks
  • In larger businesses, a finance function usually completes these complex tasks, which include:
  • Processing and recording transactions
  • Providing financial information
  • Supporting business planning and decision-making
  • Producing financial statements 
• The Influence of the Finance Function on other Business

  Departments

  Marketing :

  • Allocating budgets or promotional campaigns
  • Comparing revenue streams, such as online sales and store sales
• The Influence of the Finance Function on other Business

  Departments

  Operations :

  • Sourcing finance to purchase new production technology
  • Managing transactions related to the purchase of raw materials and components
• The Influence of the Finance Function on other Business

  Departments

  Human Resources :

  • Paying wages and salaries of workers
  • Calculating bonuses and other benefits or deductions
  • Setting and managing training budget