As your business grows, you will move from a flat organizational structure, or one where several key managers report directly to you, to a more traditional, or functional structure. A functional structure organizes your business by departments, with finance one of these. Although finance will be only one of your departments, financial management occurs throughout all of your departments to ensure your company’s profitability.
While there are a variety of ways to organize a business, most small businesses use the functional model, creating departments for human resources, marketing, finance, information technology, sales and production. As businesses grow larger, they might create a C-suite, or group of executives who oversee strategic planning for the corporation, rather than a specific function. The term C-suite comes from the titles of these executives, which include chief executive officer, chief financial officer and chief operating officer.
A finance department might evolve