SCOPE OF FINANCE FUNCTION

In several businesses, based on the complexity and size of financial decision-making, the scope of finance function may be categorized into incidental finance function and executive finance function. The coverage of functions by both is in this way

Executive Finance function

This function generally is a main function and deals with decision-making and policy making tasks and incorporate with the following:

• Determining the allocation of entire profits
• Establishing asset management policies
• Deciding upon sources & needs of external financing
• Controlling and Estimating cash flows & requirements
• Checking upon financial performance.

Incidental Finance function

This function is much more than an implementation and maintenance type and covers the following functions:

• Supervision of disbursements & cash receipts
• Safeguarding of cash balances
• Custody & safeguarding of securities, and other valuable papers
• Taking care of the mechanical factors of financing
• Record keeping, reporting .