The accounting department plays a vital role in business management, helping track revenue (money coming in) and expenses (money outgoing) while ensuring compliance with all legal requirements. It also provides quantitative financial information for management, lenders, investors, and other stakeholders, who use it to make informed business decisions.

Roles of the Accounting Department:

• One of its primary responsibilities is to accurately collect and prepare all financial statements and reports. These reports are used for budgeting, forecasting, and communication with lenders, investors, and other stakeholders.

• Maintain a healthy relationship with vendors by ensuring timely payments. However, the department should also explore opportunities to save money through discounts or incentives for timely or advance payments. Simultaneously, it must ensure a minimal amount of money is expended for each payment without incurring fees or delays.

• Track accounts receivable and outstanding invoices, advising if any collection procedures are needed. The accounting department must ensure customers pay invoices on time and maintain cordial relationships.

• The department is solely responsible for the payroll function, ensuring timely and accurate payment to all employees. Additionally, it must ensure accurate assessment of employee taxes and timely payments to state and federal authorities.