The finance function is central to the successful operation of any organization. This function is not immune from pressures to enhance the value-creating ability of the firm. Responding to the challenge to do more with less and to become a business partner, finance professionals are attacking traditional transaction-processing systems and processes, finding innovative ways to use technology and process improvements to eliminate waste and free up vital finance resources to support strategic and tactical initiatives.
All organizations undertake three basic finance activities.
These are defined as transaction processing, control and risk management and decision support. The following table shows the main activities which comprise the finance function. Reports Interim Forecasts External Reporting Expense Reports Transaction processing involves the traditional accounting functions. These functions are routine in nature and historically have been people intensive. Control and risk management encompasses budgeting, internal audit and treasury management, in addition to many other major internal financial activities.