Question

Describe the accounting and finance structure in an organization.

Answer 1

The accounting and finance departments structure in an organisation will depend on the size of the organisation, the kind of products or services it provides and requirements of law of the land.The larger the company, the more accounts clerks and accountants for the processing of the various transaction and business entries are required. Like-wise for a smaller firm only three to four accoutants and clerks are required in the finance and accounting department. The other structure of Accounting and finance department are :

(a) Account Clerks : The data entry of the transaction and making of the vouchers are done by the account clerks. They also fulfills the responsibilities like filing of documents and getting the authorisation on the vouchers. They also process the bill and their payments. They also take care of the bank transactions and reconciliations.

(b) Accountants and Full Charge Bookkeepers : The Accountants are the supervisors of the accounts and finance department who controls and guide the accounts clerks at the operatinal level. They provides services like making of adjusting entries and processing the payroll transactions of the company at the end of the month.

c) Department Controllers and Accounts Managers : The managers have the role of supervisors who guides the Accountants and clerks and ensures the control over the departments activities and working according to the requirement at various point of time. They are respoinsible for all the frauds to happen, so the Controllers takes all the steps to prevent any fraud to happen. The internal controls are in their hands. Controllers are also responsible for preparing financial documents like budgets, financial statements and audit reports and rectification reports.

(d) Chief Financial Officer : The Chief Financial Officer (CFO) is the top-most position of the Accounting and Finance Department of the organization. They are mainly responsible for the hiring of persons in the department and keep a close look at the working and results of the department. They are also responsible for the fulfilment of other departments requirements and paying off the taxes and minimisation of the tax expenses using various options to evade tax. The controlling of the cost accounting of the organisation is also in their hands.

Thus, the above points constitutes the Accounting and Finance Departments' structure of an organisation.

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