Role and Importance of Finance Department

Why is Finance important?

• ensure that there are adequate funds available to acquire the resources needed to help the

organisation achieve its objectives;

• ensure costs are controlled;

• ensure adequate cash flow;
• establish and control profitability levels.

One of the major roles of the finance department is to identify appropriate financial information prior to communicating this information to managers and decision-makers, in order that they may make informed judgements and decisions.

Finance also prepares financial documents and final accounts for managers to use and for reporting purposes (AGM etc)