Introduction to your finance department
Introduction to your finance department

The following In-house Advisor practice note provides comprehensive and up to date legal information covering:

  • Introduction to your finance department
  • Overview of the finance department
  • Typical legal issues
  • Questions to ask of the finance department

Overview of the finance department

The finance department and the legal department usually work very closely with each other in bringing together the commercial terms of a deal provided by management and/or the commercial/sales department to ensure the best financial outcome for the business. Similarly to the legal department, they are likely to have the most interaction with all areas of the business, as opposed to other departments which may have no real day-to-day need to be involved with certain other departments. The finance department will also be heavily involved in all areas of the business engaging with external suppliers to ensure the organisation gets the best deal from the right organisation, that payments are made and received on time, as well as all other departments to ensure budgets are adhered to and not exceeded. In addition, finance works to ensure the business is best protected when it comes to matters such as making sure payment terms fit with the business needs, as well as ensuring that the business has a right of recourse in the event of late or non-payments (where the company is the supplier) and in terms of getting the products and services for which it has paid (where the company is the customer).

The finance team may consist of a variation of the following departments: management accountants (creating internal accounting information to

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