It’s common knowledge that accounting is synonymous with money. An accountant seamlessly handles your business’ financial data that stabilizes the company.
However, when it comes to really defining your accounting department’s duties, things may become convoluted and confusing. From balance sheets to payroll, understanding the impact of your accounting department will help understand how your business operates and give you a checklist of what’s expected from a successful accounting department.
Your accounting department handles your business’ finances, but their roles can be varied yet equally as important. These are the 5 roles of your accounting department.
1. Accounts Payable
Also known as money out, money out refers to paying vendors and entities in a timely manner. It’s crucial to keep your relationships strong and solidify trust. This includes saving money in costs, capitalizing on discounts, and being timely in any payments going out from the company.
2. Accounts Receivable and Revenue Tracking
Working closely with Accounts Payable, this area of accounting focuses on revenue and money coming into the business (also known as money in). Issues such as outstanding invoices, collections, and having customers pay on time are only a few elements that this area of accounting takes care of.
Money makes the world go round, so the payroll department is in charge that employees (boss included) get paid in a timely and respective manner. In addition to handling salaries, this particular area in accounting also deals with business and government taxes, making sure they are accurate and being paid on time.
Reporting And Financial Statements
Collecting data and analyzing your company’s finances should be a top priority within your accounting department. It helps you forecast your company’s success, measure your key metrics, and assist you with making predictions going into the future.
Your Accounting department needs to keep an impeccable track record of this data and create information that can reflect the success of your company.
5. Financial Controls
Every department needs structure and the financial controls do just that. This area’s primary objective is to keep the GAAP standard that falls under fraud, theft prevention and compliance. In addition, they manage both reconciliations and delegations within the accounting department.
- Dallas Accounting Jobs Team