Q:

What is the purpose of a finance department?

A:

Quick Answer

The finance department in an organization oversees financial planning and management activities, including budgeting and forecasting, reporting and compliance, and creation of value. Some of these responsibilities help the organization meet compliance obligations. Others contribute to profit-building for the company.

Know More
What is the purpose of a finance department?
Credit: Andrew Rich Vetta Getty Images

Full Answer

Budgeting and forecasting is completed on a regular basis in companies. The finance department prepares historical documents and projects to aid leaders in developing forward-looking budgets. Leaders in finance inform executives about any changes to projections based on over- or under-developing sales results.

Reporting and compliance is a major role, especially in a public company, because it must issue regular earnings reports to inform shareholders and the public about its current financial position. The finance department prepares common financial statements that meet Securities and Exchange Commission requirements. Company leaders than present this information in a press release and often in a conference call with analysts. Finance departments also prepare internal financial reports that are used by managers for decision-making.

Increasingly, companies rely on finance departments for strategic planning and risk analysis before making investment decisions. Before a company invests in new property or equipment, for instance, the finance department might prepare a risk analysis report. Finance departments also play a key role in advising on business investment activities.

Learn more about Corporations

Related Questions

  • Q:

    What is Toyota Financial Services' mailing address?

    A:

    The mailing address for the Toyota Financial Services finance department is P.O. Box 5855, Carol Stream, IL 60197-5855. The mailing address for the Toyota Financial Services lease department is P.O. Box 4102, Carol Stream, IL 60197-4102.

    Full Answer >
    Filed Under:
  • Q:

    How do regulators deal with international lenders?

    A:

    Regulation of international lenders includes on-site examinations by the U.S. Federal Reserve of each foreign banking office in United States and their parent institutions to assess their risk management, operational controls, compliance and asset quality. The Board of the Federal Reserve regulates the international lending of U.S. banks and corporations by requiring their disclosure of international assets, the establishment of transfer risk reserves and account reports for fees on international loans.

    Full Answer >
    Filed Under:
  • Q:

    What are some services offered by Flex-Pay payroll services?

    A:

    Flex-Pay Payroll Services offers an extensive suite of services that keeps companies in compliance with existing regulations, including time and attendance services, section 125 administration, I-9/E-Verify solutions, 401(k) file uploads and file creation for general ledgers. The company also offers a full-spectrum human resources solution and an employee self-serve center, making management simpler and helping companies decrease costs by efficiently outsourcing these core functions.

    Full Answer >
    Filed Under:
  • Q:

    What are some services offered by the Dee Sign Company?

    A:

    As of 2015, some of the services offered by the Dee Sign Company includes the creation of various types of yard signs, frames, pennant flags, feather flags and commercial signs. The company also sells stock vinyl stickers, SmartBoard QR and Text, hanging sign posts, and magnetic car signs.

    Full Answer >
    Filed Under:

Explore