Key functions of the Finance department in an IT organization:

 In an IT company Finance organization plays a critical role in the success.  The finance department reports under the Chief Financial Officer of the company.  The objective of this group is to improve profitability, reduce risk, and maintain corporate governance.

Here are the key functions of the Finance department in an IT organization:

1) Corporate Finance 

Corporate Finance Department’s responsibilities are how business fund their operations, maximize profits and minimize costs.  It deals with day-to day demands on business cash flows.  The main activities of Corporate Finance are:

a) Preparing accounts and financial statements

b) Working with the Tax department to pay taxes

c) Decision and distribution of dividends to its shareholders

d) Working with Corporate accounting to fund the internal operations and capital expenditure of the company

e) Ensuring that the company is profitable.

f) Support business in developing annual growth strategy.

g) Preparation of financial models and detailed forecast of the company's future operations

h) Partnering with business and providing analysis and insights to enable commercial decision making

The entry level roles in Corporate Finance of an IT company are:

a) Associate Financial Analyst:  Assists with financial forecasting, budgeting and financial modeling.  They provide insights on company’s performance and industry trends based on financial data analysis.

b) Junior Accountant:  Maintaining financial records, preparing journal entries and assisting with audits.

c) Junior Internal Auditor: Assists with reviewing financial records and reviews compliance with companies’ rules and regulations.

d) Account Receivables Specialist: Manages customer invoices, payments and collections and ensures that companies dues are received on time and accurate record is maintained.

e) Account Payables Specialist: Manages vendor invoices, payments and ensures that company pays it dues on time and accurate record is maintained.

2) Corporate Accounting

This department is focused on internal Employee Payments. It works on the following:

a) Processing employee payroll (salaries)

b) Managing employee tax deductions at source

c) Reviewing, approving and disbursing employee Loans

d) Reviewing and processing employee claim reimbursements

e) Processing employee stock options

f) Managing corporate credit cards

g) Distribution of bonuses

The entry level roles in this department are:

Here are some common entry-level roles in an internal Employee Payments department:

1. Payroll Clerk: Assists with processing payroll, maintaining employee records, and ensuring accurate payment of salaries and benefits.

2. Accounts Payable Assistant: Supports the accounts payable team by processing invoices, verifying expenses, and maintaining vendor records.

3. Payroll Analyst (Junior): Analyzes payroll data, assists in reporting, and helps ensure compliance with relevant regulations.

4. Compensation and Benefits Assistant: Aids in administering employee benefits programs and assists with compensation-related tasks.

5. Data Entry Specialist: Inputs employee payment information into the payroll system and maintains accurate records.

6. Human Resources Assistant: Supports the HR team in various administrative tasks, including onboarding and maintaining employee payment information.

7. Compliance Coordinator (Entry-Level): Assists in ensuring that employee payment processes adhere to legal and regulatory standards.

8. Financial Analyst (Junior): Provides support in budgeting and financial reporting related to employee compensation and expenses.

These roles typically involve a combination of administrative tasks, data management, and support for the overall employee payment process.

3) Taxation

The tax department in IT company focuses on Tax planning, tax rules compliance and payment of taxes on companies’ income.   For companies with global footprint there are two different Tax Teams – local and international.  The tax department plays a very important role in ensuring that the company is compliant with the tax laws of all countries where it engages in business.  The following are the activities undertaken by Tax Departments

a. Assessing taxes to be paid (E.g. Sales, with holding etc.)

b. Calculating tax payments

c. Filing tax return in collaborating with corporate finance department

d. Collecting necessary documentation for tax compliance from vendors and customers

e. Advising the sales team on with holding taxes and other tax expenses on deals to calculate profitability of a deal.  

Here are the summarized entry-level roles in the tax department:

i. Tax Analyst: Provides support in preparing tax filings, compliance reports, and conducting tax research. Often works with indirect taxes and assists in audits and tax planning.

ii. Tax Consultant Intern: Assists senior consultants with tax-related projects, such as tax forecasting, compliance, and client advisories. Typically helps with research and data analysis for tax optimization.

iii. Corporate Tax Associate: Focuses on corporate tax compliance and planning, ensuring the company follows local and international tax laws. Assists in preparing tax returns and identifying potential savings.

iv. Tax Technology Associate: Supports the implementation of tax software solutions, helping businesses integrate new technologies like AI and blockchain into their tax processes for efficiency.

These roles offer opportunities to build foundational skills in tax while gaining exposure to digital tools and cross-functional collaboration.

Disclaimer:

The information provided in this article is intended for informational purposes only and reflects general practices within the Finance department of an IT organization. While the roles and responsibilities outlined may be applicable to many companies, specific functions and job titles can vary based on organizational structure and industry practices. Readers are encouraged to conduct further research and consult with relevant professionals to gain a comprehensive understanding of finance roles within their particular context. The author and publisher disclaim any liability for decisions made based on the content of this article.