Finance and operation departments play critical roles in any business. Finance departments provide information necessary for the continued operations of a business. The operations department, on the other hand, runs day-to-day operations. Some organizations choose to combine the functions of the finance and operations department.
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Role of Finance
Bookkeeping is one of the main roles of a finance department in any organisation. Additionally, a finance department needs to keep track of sales and spending and produce yearly and quarterly statements. Financial departments need to also regularly update managers of other departments within an organisation about the financial state of the business. Financial reports must remain accurate, verifiable and objective. Management relies on the income statement, which shows the company´s financial results, to calculate budgets. Moreover, the finance department needs to help the organization secure necessary funding and distribute profits in the form of dividends.
Duties of a Finance Manager
A finance manager oversees all money-related functions with a business, including the billing and accounting departments. Additionally, finance managers will typically monitor the mark-up of products and services to ensure the profitability of the company. The finance manager also reviews the budget and helps to make decisions about cuts and increases in spending. Further, finance managers prepare and interpret financial reports and help to forecast the company´s financial future.
The role and duties of an operations department often vary depending on the size and industry of the company. The operation management generally develops internal policies and procedures and manages the operations staff. Operations managers help to analyse the company´s finances and spending and manage resources. In addition, operations managers monitor the company´s performance and efficiency to make improvements and address problems. Operations can also commonly perform a number of human resources management functions, such as assigning tasks, setting employee priorities and determining staffing requirements.
Operations Manager
Operations managers require sound knowledge of many aspects of the business. Apart from good communication skills, operations manager should have experience in strategic planning, resource management, accounting and team leadership. Operations professionals need a broad set of skills. In addition to the understanding of finance, they should have knowledge of marketing strategies, sales techniques and production processes. Operations managers help to coordinate the activities of all the departments within a company. Operations manager’s duties also often overlap with the duties of a chief executive officer.