Section of a company that deals with the accounting side of the company. The accounting department of a company is responsible for recording transactions, maintaining the general ledger, billing customers, paying bills, cost accounting, payroll, preparing financial statements, performing financial analysis, and more. The head of the accounting department is often given the title of the accounts manager. Some companies maintain an in-house accounts department, some outsource bookkeeping & accounting, whereas others outsource the entire accounts and finance department.
Most Common Accounting Department’s Responsibilities Explained in Detail
Paying Bills and Tracking Vendors
In order for a business to maintain good and healthy relationships with all its vendors, it is important that all the vendors get paid on time without any unnecessary delays. The job of the accounting department also includes keeping a tab on opportunities for saving money, for example, determining if there are any incentives or discounts available paying specific vendors quickly.
Billing Customers and Tracking Customers
The accounting department is responsible for recording and tracking receivables including outstanding invoices. The accounting department is also responsible for ensuring that payment from customers gets received on time.
Payroll is an important function of the accounting department in which the department ensures that employees are paid accurately and timely.
Reporting Financial Statements
The primary reason for collecting and maintaining proper data in your accounting software is to prepare financials that can be used for forecasting, budgeting, and making other important business decisions.
The role of the accounting department is to ensure that proper financial controls are in place to ensure compliance with the relevant accounting standards as well as the applicable laws and regulations.