The financial area of a company plans and manages its economy. It is ensuring that it can access liquidity in a sustainable manner. In this department, the technologies have also taken shape.
A clear example is accounting software and electronic signatures for contracts. Both innovations represent a solution to the large levels of information that are managed for better use in decision-making.
The financial area of a towing company: What are its functions and roles?
Finance departments come in all shapes and sizes, but there are 4 key roles they must take on. None of these exist in a vacuum. They will definitely need to communicate and collaborate with each other.
This is a company-wide finance function that involves reviewing, categorizing, and entering all transactions for an organization.
Both bookkeepers and accountants perform this activity. For Towing Company San Jose, accountants must keep accurate financial records of the company.
Common recording functions
- Accounts Payable – Reports of money owed to company vendors.
- Accounts Receivable – Report any short-term liquidity or financial assets owed to the company.
- Payroll – Keep business compensation data up to date and process monthly payments.
This role oversees the company’s registry to ensure that the books of account are accurate and comply with financial regulations. A financial controller will generally be responsible for tasks such as:
- Accounting Team Management – Overseeing the accounting and bookkeeping team to ensure timely and up-to-date reporting.
- Inventory accounting – monitoring, evaluation, and tracking of inventory assets.
- Revenue Recognition – Creation and application of controls for monthly financial reports to ensure compliance.
Planning and financial analysis
Financial planning and analysis involve collecting relevant financial data to synthesize it into digestible trends and forecasts that can inform business decisions. Among the activities that analysts carry out:
- Data Visualization – Creating easy-to-understand images that help business managers understand business performance.
- Budgeting and Forecasting – Developing departmental and company-wide financial goals to guide the business month-to-month.
- Price analysis – determination of the optimal price for the organization’s products.
This is the role that a Business Manager or CFO is likely to play. It is an executive level that has an important role in making strategic decisions and in the elaboration of the financial strategy in general and its guidelines.
Additionally, this role oversees the entire finance area at a company and uses the big data collected through financial planning and analysis to communicate with internal and external business stakeholders.