Accounting department definition

What is an Accounting Department?

The accounting department is part of the corporate overhead group of an organization. It is responsible for billings, payroll, cost accounting, the production of financial statements, paying suppliers, and similar activities. The accounting staff may provide a number of additional value-added services, such as actual-versus-budget reporting, cost reduction suggestions, and other forms of financial analysis.

Structure of the Accounting Department

The accounting department is usually managed by a controller, who in turn reports to the chief financial officer. The controller’s direct reports are a tax accountant, general ledger accountant, payroll manager, cost accountant, and billing and collections manager. If the company is publicly held, then a reporting manager may also report to the controller.

In a smaller organization, a bookkeeper may be the only person in the accounting department. In this situation, an outside CPA may review the work of the bookkeeper from time to time, and make suggestions to management regarding how the bookkeeper’s work can be improved.