Basic Functions Of Finance Department In Manufacturing Company

For stable operation of manufacturing companies, the basic functions of the Finance Department including accounting, planning, analysis and internal control. In practice, there are other sub-department in the organizational structure of the Finance department, such as treasury and tax, which was set up by function. In this paper, I’ll discuss how to strengthen the three basic functions of the Finance department in manufacturing companies.Choose a good information system is the first thing for accounting. There were two standards in choosing information system:first, the system is cost-effective, second, it could meet the company’s needs of current operation and future growth. In the installation of information systems implementation process, particular attention should be paid for the design of master data and management processes in system. Especially for the master data, it will affect the operational efficiency of the company throughout the life cycle of information systems, so rational design and keep an expansion space is critical. Companies big enough to have the ability to buy ERP software expensive as SAP, you should keep an IT team which has the ability of secondary development, to develop sub-system to meet the needs of the company’s unique characteristics. And domestic software should be considered in order to save costs. In addition to providing high quality financial reports, management reports should also be paid great attention to. Management reports should be used to analysis and follow up the status and efficiency of assets, to control costs and expenses, and provide information for the decision making of managers.Planning and analysis often be put together in organizational chart, which was mainly due to one of the main role of analysis is to follow up the results of planning. Planning and analysis work is usually served by high quality employees. Planning requires of flexibility, different plan for different stages of the company’s development. For a stable manufacturing company, in addition to long-term plan, annual operation plans was most important, monthly review and follow up should also be prepared and then formed a monthly rolling forecast. Internal control means to carry out risk assessments, the implementation of control activities, the establishment of monitoring, the use and optimization of a variety of communication channels, and to carry forward and create a good internal control environment, to enhance the efficiency of business to ensure that corporate financial reporting fair reliability, operating in line with the purpose of the laws and regulations. For a manufacturing company, the key control process including procurement to payment, the sales to receivables, production and inventory management, asset management. These key control points should be a written document, and the related staff should know clearly about it. Some of the key controls points should be written as Standard Operational Processes.By strengthening the basic functions of the above financial management, enhance the professional skills of finance staff in practice, building up a high quality finance team through organization, training, stimulation and differentiation. Achieve the value of finance department by help the company gain rapid growth.