The Functions in a Finance & Accounting Department fall into two groups: accounting, which covers bookkeeping and the accrual accounting of the month-end close, and finance, which covers financial planning and analysis.
Accounting starts with 📝Bookkeeping, pulling transactions into the accounting system and processing them. It also includes managing 📝Accrual Accounting, typically associated with the month-end close: journal entries that match revenue and expenses to the month they belong to, rather than to when cash moved.
Finance centers on 📝Financial Planning and Analysis (FP&A) and financial planning: building the model of the business, budgeting, and analyzing results to understand what drives them.
These functions make up a 📝Finance & Accounting Department. The 📝Financial Organization Responsibility Matrix breaks them down further, adding controller, payroll, and financial engineer functions alongside FP&A and accounting.