Organisation of Finance Function

What is Finance Function Organisation-Frequently Asked Questions-Organisation of Finance Function

In the traditional organization of the finance function of a medium-sized to large business (see Figure), the finance director, also known as the CFO or chief financial officer, supervises the accounting and finance departments. The financial controller, also known as the top accountant, oversees accounting. The corporate treasurer, also known as the financial manager, manages the company’s money and currency. In most companies, it has always been part of the job of the finance director to oversee information technology (IT) and data processing. This is because payroll was the first major use of computers in accounting. Accounting ledgers, financial reports, budgeting, and other financial data and functions followed. Continue reading to become an expert on organisation of finance function and learn everything you should know about it.

In addition to the managing director (or CEO), the board of directors of a limited company may also include one or more certified accountants and probably the finance director. The day-to-day processes of a company are always in the hands of mid-level and lower-level managers. The board of directors has given this job to someone else. There will almost likely be one or more certified public accountants working in some capacity on this management team, which is ultimately responsible to the board of directors. For a clearer understanding of the finance function in business topic, keep reading.

Organisation of Finance Function

Financial management is vital for planning, allocating resources, and maintaining control. Financial tasks are also distributed throughout the organization. Investment policies may involve input from various departments. Marketing and sales managers contribute to planning and forecasting. Inventory and receivables policies involve different managers. Many people rely on financial experts due to the complexity of financial management. Wise financial decisions are critical. Establishing an effective financial management system is essential. Organizing the finance function is crucial for business management.

Purchasing Manager

A purchasing manager is in charge of a group that buys things for a company to resell or use internally. This job is also called “procurement director” or “supply manager.” They look for the best deal while keeping the best quality they can.


The manager of a company is in charge of managing the company’s money. The treasurer of a company is in charge of a number of important tasks, such as risk management, corporate finance, and the managing of cash and liquidity.

The Head of Marketing

A “marketing director” oversees the planning and execution of marketing projects. They must be able to reason, look at facts, lead a group of people to success, and talk to customers and coworkers all at the same time.


The person in charge of an organization’s financial reporting, planning, and accounting for executives and managers is called the organization’s controller. Moreover, the organisation of the finance function can vary depending on the size and nature of the business.

Director of Operations

The Companies Act, 2013 (the “Act”) specifies that a managing director is a director who gains full management control over a company, either through a contract, the company’s articles of association, or a vote at an annual meeting or board of directors meeting. Either the annual meeting or a meeting of the board of directors can decide to give a director this broad power.

Head of Finances

In addition, the organization’s financial health and progress are in the hands of the Director of Finance. To achieve the objective of enhancing productivity, businesses develop profitable strategies, monitor accounting procedures, generate comprehensive reports on internal cash flow, and seek to improve the current status.

Manager of Production

The production head is in charge of coming up with and putting into action different plans to increase output and efficiency. So, you will collaborate with other teams to establish and ensure the proper setup and execution of processes, from the planning stage through order completion and meeting deadlines.


A “shareholder” is a person or organization that the company recognizes as the owner of shares of the business’s share capital and calls a “shareholder.” Although, the organisation of the finance function is essential for a company’s success and financial stability.

Directors’ Meeting

Most of the time, the owners of a public company choose the board of directors (BoD). The job of this board is to set the company’s plan and keep an eye on management. Most of the time, the board of directors only gets together once every few weeks. Companies that sell on the stock market must have a board of directors.

Chief of Staff

A DOP is a person in charge of an organization’s human resources area. This person is also known as the Director of Personnel. The Human Resources department is responsible for overseeing compensation and benefits management, as well as ensuring compliance with all employment regulations.


Whoever Manages the Company’s Finances is Responsible for them

The Controller’s main jobs are to plan, keep track of money, and run the business. As needed, other duties may be given. So, the Treasurer is mostly in charge of getting money, managing cash and debts, and keeping track of the company’s investments. Companies should structure their finances to align with their specific requirements.

How do Financial Institutions Operate?

In a medium-sized structure’s finance organization, sub-departments for essential accounting functions such as accounts receivable, accounts payable, payroll, and procurement are often established as independent entities. This adds two more organizational layers.

Why is it Crucial to have an Organizing Function in Place?

So, organizational function helps get things done, which is very important for the growth of a business. Chester Barnard once said, “Organizing is a function that defines role positions, related jobs, and the coordination between authority and responsibility.”


Financial department organization varies for each business. Factors like size and financial operations influence the finance structure. Small businesses often have owners managing financial responsibilities. Tasks include forecasting cash flow, budgeting, auditing, credit policies, and debt collection. As businesses grow, finance departments become less centralized. Medium-sized companies may have financial controllers or treasurers. Organizing the finance function is crucial in today’s digital age.

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