Chapter 14
An Overview of Investment Accounting
14.1 ROLE OF THE FINANCIAL CONTROL DEPARTMENT
As its name implies, the core function of the financial control department of a business is to manage its financial resources. The department is usually headed by a main board director who may have the title of chief financial officer. CFO job descriptions vary, but are likely to include:
- Overseeing all company accounting practices, preparing budgets, financial reports, tax and audit functions
- Directing financial strategy, planning and forecasts; conferring with chief executive officer, executive directors and department heads
- Managing investment and raising of funds for the business
- Studying, analysing and reporting on trends, opportunities for expansion and future company growth.
Within the department there are likely to be the following sections specialising in different activities:
- Management accounting, also known as product control: This section prepares budgets and produces the profit and loss accounts and balance sheets for individual business units, working closely with the managers of the business units to ensure that the income and expenditure of the business units is correctly recorded, and any financial risks are measured and appropriately contained.
- Statutory reporting: This section produces the firm’s balance sheet and profit and loss account, which is then subject to both internal and external audit.
- Regulatory reporting: This section produces the financial and statistical ...
