We are sure at least some of you would like to know what persons holding different positions in organizations do. We'll do several posts to clarify. These posts will be labeled "functions".
In this post we will positions dealing with money.
So what’s the difference between a Commercial Manager, a Finance Manager and an Accountant? What’s an Account Manager?
In this post we will positions dealing with money.
So what’s the difference between a Commercial Manager, a Finance Manager and an Accountant? What’s an Account Manager?
First of all an Account Manager usually manages a customer account and belongs in the sales or support department. See this Wikipedia Page for more details I have included this to get one general confusion cleared. We’ll talk about customer related jobs in a later post.
A Commercial Manager manages the link between a company’s business activities and its finances and different companies have slightly different job descriptions. Commercial Managers typically manage activities ranging from purchase, inventory (stocks of Raw Material, Spares & Consumables, Finished Goods etc.), stores, dispatches etc.
Usually Commercial Managers prepare contracts, which a company is required to make with suppliers or customers and they usually have a major say in pricing of goods. Commercial Managers are generally responsible to manage product and service related taxes like Central Excise, Service Tax, Sales Tax etc.
Commercial Management is a broad term and there might be many managers performing this function. Usually Purchase, Materials, Stores etc. come under the ambit of the “Commercial” function in most companies.
A Commercial Manager usually requires a commerce degree or a professional finance qualification i.e. “CA” or “ICWA”. In Engineering companies Commercial Managers are required to have technical qualifications and are usually engineers with aptitude for finance since most contracts in such companies are technical in nature.
The Finance Manager of a company manages the money in the company. He is responsible to ensure that the company has enough money when required (i.e. to organize loans and more money from the owners) minimizing the “cost of funds” and ensure that excess funds are utilized to provide the best return to owners. Finance Managers play a key role in preparing Company Budgets. This link from Wikipedia gives a good description of the finance function if you are interested in more details.
To be a Finance Manager, one needs either a professional finance qualification like “CA” or should have an MBA degree wit Finance as a major subject.
Accountant or Manager Accounts or Accounts Manager - The Financial Accounting Function
An Accountant’s job is one of a scorekeeper. He keeps a score about what has happened to the money in a company. He deals with facts only. The key tasks of an Accountant are bookkeeping and analysis. The Accountant’s information is key to understanding company health.
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A Commercial Manager manages the link between a company’s business activities and its finances and different companies have slightly different job descriptions. Commercial Managers typically manage activities ranging from purchase, inventory (stocks of Raw Material, Spares & Consumables, Finished Goods etc.), stores, dispatches etc.
Usually Commercial Managers prepare contracts, which a company is required to make with suppliers or customers and they usually have a major say in pricing of goods. Commercial Managers are generally responsible to manage product and service related taxes like Central Excise, Service Tax, Sales Tax etc.
Commercial Management is a broad term and there might be many managers performing this function. Usually Purchase, Materials, Stores etc. come under the ambit of the “Commercial” function in most companies.
A Commercial Manager usually requires a commerce degree or a professional finance qualification i.e. “CA” or “ICWA”. In Engineering companies Commercial Managers are required to have technical qualifications and are usually engineers with aptitude for finance since most contracts in such companies are technical in nature.
--x--
The Finance Manager of a company manages the money in the company. He is responsible to ensure that the company has enough money when required (i.e. to organize loans and more money from the owners) minimizing the “cost of funds” and ensure that excess funds are utilized to provide the best return to owners. Finance Managers play a key role in preparing Company Budgets. This link from Wikipedia gives a good description of the finance function if you are interested in more details.
To be a Finance Manager, one needs either a professional finance qualification like “CA” or should have an MBA degree wit Finance as a major subject.
--x--
Accountant or Manager Accounts or Accounts Manager - The Financial Accounting Function
An Accountant’s job is one of a scorekeeper. He keeps a score about what has happened to the money in a company. He deals with facts only. The key tasks of an Accountant are bookkeeping and analysis. The Accountant’s information is key to understanding company health.
In many companies the accountant also plays the role of a controller. S/he acts as a control point or gate by which all financial transactions need to pass. Accountants also compute and implement a company's tax requirements. It is usually the job of the Accountant to ensure compliance with all statutory financial matters.
Requirements of an Accountant – a degree in commerce and / or a professional finance qualification like “CA”. Accountants need to know at least one accounting package like Tally and be very good at Microsoft Excel and need proficiency in arithmetic. This link provides a typical job description of an Accountant.
Requirements of an Accountant – a degree in commerce and / or a professional finance qualification like “CA”. Accountants need to know at least one accounting package like Tally and be very good at Microsoft Excel and need proficiency in arithmetic. This link provides a typical job description of an Accountant.
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