There is no standard pattern for the organization of finance function. In general, internal structure of finance department can take following form:
- Board of directors
- Executive Committee
-> Financial Controller
•Accounting and Costing
•Statistics and Finance
•Taxes and Insurance
- Deciding the financial needs
- Raising the funds required
- Allocation of funds
•Fixed assets management
•Working capital management
- Allocation of Income
- Control of Funds
- Evaluation of Performance
- Corporate Taxation
- Other duties : to prepare annual accounts, carrying out internal audit, safeguarding securities, present financial reports to top management. Etc.
Non recurring Duties :
- Preparation of financial plan at the time of company promotion
- Financial adjustments in times of liquidity crisis
- Valuation of the firm at the time of acquisition and merger etc.
Uniform costing is the application of the same accounting and costing principles, methods or procedures uniformly by various undertakings in the same industry. It is a particular technique which applies the usual accounting methods like standard costing, marginal costing, and budgetary control.
Uniform costing method can be advantageously applied:
-In single organisation having number of branches.
-In a number of firms in the same industry who are inter connected through trade association.
- In industries which are similar such as cotton, gas and electricity.