The Organizational Chart of the Financial Department

1) Explain the organization chart of finance function in a typical organization. What is the key function of each role/position? Explain the difference between the treasury and controller function?

The organization chart of a finance department is determined by each company, it’s not depending on whether it is a minor, middle or huge sized organization. The organizational chart consists of a chief financial officer (CFO), a vice president, one or more accountants and a budget analyst.

The CFO is the head of the finance department. The CFO is in charge for the general planning and guidance for applying the plan when it comes to the finances of the company. The CFO also workings with the heads of other branches, together with human resources, manufacturing, sales, marketing, production or any of the other departments in the company. The CFO comes across with the heads of all of these branches for planning determinations. For each branch has needs for accompanying their jobs and the finance department is in charge of creating, managing and allocating funds from the company budget to meet all of these needs.

The next department in the organizational chart of a finance department is the vice president. Vice president will reports directly to the CFO, and is more complicated in working straight with the accountants in the department to appliance the strategy that the CFO and the other heads of the departments have worked on for running the business.

The next level is the accounting department. The accountants are the ones that handle the day-to-day accounting and bookkeeping operations of the business. The accountants have to prepare asset, liability, and capital account entries by compiling and analysing account information and also...

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...apital is the cost of fund used for financing a business. Ultimately, cost of capital refers to the method of financing used, whereby the cost of equity is financed exclusively by equity and cost of debt is financed exclusively by debt. Many company used this tool to finance their business, their overall cost of capital is derived from weighted average cost of capital (WACC). Company uses WACC in deciding which financial track to be followed. For example, if a person has $20,000 to capitalise and must select among Stock A and Stock B, the cost of capital is the dissimilarity in their returns. If that person invests $20,000 in Stock A and receives a 7% return, while Stock B makes a 9% return, the cost of capital is 2%. One and only way of theorizing the cost of capital is as the quantity of cash one could have completed by creating a dissimilar investment decision.