An accounting department provides accounting services and financial support to the organization it belongs to. The department records accounts payable and receivable, inventory, payroll, fixed assets and all other financial elements. The department's accountants review the records of each department to determine the company's financial position and any changes required to run the organization cost-effectively. An accounting department is a dedicated team of specialists who manage the finances of an organization. While not every member of the team will be a certified public accountant, team members will generally have training in bookkeeping processes and procedures. By developing an accounting department, a company can help ensure full transparency in its financial transactions, while also providing specialized, centralized support to other teams and managers. Quality financial management can help ensure the ongoing health of a business.
In order to maintain great relationships with vendors making sure that everyone gets paid on time is a vital role. The role of the accounting department includes keeping an eye on opportunities to save money.
Accounts receivable is responsible for creating and tracking invoices. The responsibility here includes assuring that customers pay those invoices on time, so a system of friendly reminders is crucial.
Payroll is a critical function of the accounting department and includes making sure all employees are paid accurately and timely.
The primary reason you collect data properly in your accounting software is to prepare financial reports that can be used for budgeting, forecasting and other decision making processes.
The role of the Controller is to ensure procedures are set up properly to manage that process without errors.