The role encompasses managing the financial obligations and incoming payments of an organization. It involves overseeing the recording, tracking, and processing of invoices from suppliers, as well as managing customer invoices and ensuring timely collection of payments. An example would include reconciling vendor statements with internal records or managing overdue customer accounts to minimize financial risk.
Effective management of these functions is crucial for maintaining healthy cash flow and accurate financial reporting. It provides businesses with insights into their financial health, allowing for better budgeting and forecasting. Historically, these functions were often manual and paper-based; however, technological advancements have led to more efficient and automated processes, improving accuracy and reducing errors.
