Financial Operations: Organization Chart Of An Accounts & Finance (A&F) Department

Published by slang May 13th, 2006 in Financial Operations

Assuming a situation when you just joined the Finance department, your management felt that something is wrong with its existing structure and would like you to review its existing organization chart.

Append below is an hypothetical trading based finance organization chart (assuming IT and administration is under the Head of Finance):

· Controllership
· Treasurer
· Financial Planning
· Order and Inventory Management
· Credit Control
· Management Information System
· Facilities or Administration

Controllership

Preparation of Monthly financial statements and conduct monthly accounting review with other business unit heads

Timely & Accurately submission of financial reporting to Head Office or Group Regional Office

Taxation –compliance and planning

Liasing with both internal & external auditors

Ensure proper internal controls/checks being established

Prepare and review key performance metrics like quarterly EVA, ROA

Establish local policies and procedures and ensure adherence to it. Also,ensure same comply with head office’s policies and procedures ( if any)

Preparing and managing Payroll, Pension, share re-investment schemes and others

Balance Sheet Review: ensure all items like inte-companies, accruals, provisionsand others being reconciled and all recoverable being follow up timely.

Conduct and review cost effectiveness and management program

Treasury

Ensure existing treasury procedures comply with Head Office.

Cash flow management: cash forecast or projections

Placement and investment policy

Foreign exchange management: mitigation FX risk

Minimize borrowings cost and ensure availability of correct quantum and cheap fund

Financial Planning

Involves actively with pricing which includes strategy, major deals, transfer pricing, rebates and new product release
Contract administration

Annual planning

Calendarized plan whether monthly quarterly and others

Best Estimates/forecasts whether monthly, quarterly and other

Monthly reporting to Head Office/ Group Regional Office

Monthly and Quarterly Review

Risk Management Reporting
Capital Appropriation-feasibility,etc

Order and Inventory Management

Customer/Sales order Recognition

In charge of incoming orders

Responsible for backlog report (deferred sales)

Ordering of goods and services

Inventory Control

Logistics-shipping, customs clearance, warehousing, delivery to customers, insurance, invoicing customers, export compliances

Credit Control

Vetting of customers

Weekly collection forecasts

Contract Administration

Contracts and customers negotiation

Opening of new accounts

Achieving desirable days sales outstanding

Achieving desirable % of overdue and aged accounts receivables

Management Information Systems

Office automation

Implementation of Oracle/XYZ systems

Supports other division

Supports existing applications and database

Low down-time due to computer down

Facilities or Administration

Capital Appropriations inclusive of fixed assets identification,tagging,etc

Utilities

Courier

Stationery, photocopying,

Cleaning services

Non-trading purchases

Tenancy agreements

Central filing,

Security

Despatching

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