Routine Finance Functions
A company needs to perform some regular activities to complete its managerial activities properly. These are called incidental or routine functions. Routine finance functions are those financial functions which generally do not require managerial involvement to carry out. The finance manager will be involved with the managerial functions while the routine functions will be carried out by junior staff in the firm. Routine finance functions are performed for the effective execution of managerial finance functions. These functions are carried out by the people at lower levels. Routine finance functions include the following tasks as follows:
- Supervision of cash receipts and cash payment
- Custody and safeguarding cash balances and valuable papers such as securities, insurance policies, certificates of property, contract paper etc.
- Taking care of mechanical details regarding all new outside financing employed by the firm.
- Maintaining records of the firm’s activities which have financial implications
- Timely reporting to facilitate financial manager
Routine finance functions are performed to the effective execution of executive finance functions. The financial manager’s involvement in these functions is only limited to the extent of setting up rules and regulations and procedures, establishing standards for the employment of personnel and evaluating the performance to ensure that rules are properly followed. Some of the routine finance functions are as follows:
- Supervision of cash receipts and disbursements
- Safeguarding of cash balances
- Custody and safeguarding of valuable documents like securities and insurance policies.
- Taking care of mechanical details of financing
- Record keeping of the financial performance of the firm
- Reporting to the top management
- Supervision of fixed assets and currents assets.