The finance department in a business takes on a few core roles. Its primary responsibility, though, is to ensure that the company optimizes its use of limited financial resources. The finance director typically sits on the executive leadership team and advises the team on monetary decisions. Over time, finance employees track spending relative to budgets and alert leaders to concerns.
A company's finance department monitors compliance with financial reporting requirements. For a public company, finance prepares quarterly requirements in line with U.S. Securities and Exchange standards. For private companies, finance prepares management reports for use in planning and decision-making. Finance leaders also monitor liabilities and advise management on the company's progress toward paying off short-term and long-term debts.
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