Role & Goals of Finance Department in Public Company

The finance department of a public company has several key objectives that are essential to the company’s overall success. These objectives include:

1. Raising capital: The finance department is responsible for raising capital for the company through the issuance of stocks and bonds. They work to ensure that the company has the necessary funds to operate and grow.
2. Financial planning and analysis: The finance department is responsible for creating and managing the company’s financial plan, including the budget, forecast, and long-term financial goals. They also analyze financial data to identify trends and potential risks.
3. Financial reporting: The finance department is responsible for preparing and issuing financial statements, such as the income statement, balance sheet, and cash flow statement, which are used to communicate the company’s financial position to investors, analysts, and other stakeholders.
4. Compliance: The finance department is responsible for ensuring that the company is compliant with all relevant financial regulations, including the Generally Accepted Accounting Principles (GAAP) and the Securities and Exchange Commission (SEC) rules.
5. Risk management: The finance department is responsible for identifying, assessing and managing financial risks that the company may face.
6. Investment management: The finance department is responsible for managing the company’s investments, such as cash reserves and securities.
7. Treasury management: The finance department is responsible for managing the company’s cash and liquidity, including the management of bank accounts, cash flow forecasting, and working capital management.
8. Tax planning and compliance: The finance department is responsible for ensuring that the company complies with all relevant tax laws and regulations and works to minimize the company’s tax liability.
9. Financial control: The finance department is responsible for implementing and maintaining internal control systems to ensure the accuracy and integrity of the company’s financial data.
10. Provide financial advice to the management: The finance department should provide financial advice to the management to assist them in decision making.

All of these objectives are closely interconnected and are necessary to the overall success of the company. They help the company make informed decisions, maintain financial stability, and create value for shareholders.