A reporting group within the department creates adjusting journal entries to bring the company's initial financial results into compliance with the applicable accounting framework, writes footnotes to accompany the financial statements, and releases financials following the end of each reporting period. The accounting department is responsible for keeping track of overdue invoice payments from customers, and uses a variety of methods to extract payment from them, including dunning letters, phone calls, and attorney letters.įinancial statements. The previous year’s budget may be used as a baseline to formulate the budget for the next year.Ĭollections. The department assists the rest of the company with the formulation of a company-wide budget, which is used to plan for expenditures in the coming year, including the purchase of fixed assets. It is essential to issue billings on time, in order to enhance cash flows.īudgeting. A billings group assembles information from the shipping and customer order departments to create invoices that are sent to the company's customers. The most common responsibilities of the accounting department are as follows:īillings. Though considered "back office" activities, these functions are essential to the proper operation of a business. The accounting department is responsible for a large number of administrative functions within an organization.
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