Accounting Organizational Structure

An organizational structure is the framework business owners create to manage and operate their company. While many structures are similar in theory, they are typically designed for the specific operations of their company. Accounting organizations are made up of several individuals who provide financial services in the business environment.

Facts

Many independent accounting firms operate as partnerships. This allows several individuals to work as a team for making business decisions in the organization. Accounting departments generally operate under a tall structure where the chief financial officer or controller makes decisions.

Features

Accounting firms and departments are typically broken out into individual departments. Each department is responsible for a specific accounting function. Departments include auditing, general accounting, taxation or inventory management depending on the size of the company or organization.

Effects

The organizational structure in an accounting department or organization helps create a natural segregation of duties. This segregation ensures no one individual is responsible for too many accounting functions. Accounting organizations do this to maintain independence and objectivity in the firm.

References

• Reference for Business: Organizational Structure