Whether you’re operating a small, medium, or large business, you need a finance team that ensures you stay in business. Likewise, the finance department needs the best accounting department structure to accurately manage, track, and report transactions.
With the right structure, you can allocate resources optimally, encourage clear communication, and speed up reporting for decision-making. What’s more, a well-designed organizational structure for the accounting department evolves to match the changing needs of your growing business.
If your business is growing, you’ll know what to change so you don’t strain your team and negatively impact your bottom line.
This guide will show you the accounting department structure for small, medium, and large businesses and best practices.
A small accounting department or practice can have about five employees with clear roles and responsibilities. Its accounting team structure comprises the following:
An accounting practice owner of a small business with a CPA firm organizational structure makes top-level decisions. They oversee the operations in the department and ensure there’s accuracy, compliance, and integrity in the information they receive from their teams.
More importantly, practice owners or department heads nurture accountant-client relationships by solving unique challenges and building trust. Other duties include:
A manager or partner of a small accounting firm supervises the daily operations of the business. They supervise accountants and associates to ensure clients receive quality services. Other duties include:
Accountants perform daily accounting operations like bookkeeping and preparing payroll and tax returns. They’ll also do the following:
A small business may decide to have in-house administrative staff or to outsource admin duties. If you choose to have an admin assistant or office manager, they’ll do the following.
Medium Accounting Department Structure for Medium Businesses
A typical accounting department structure for medium-sized businesses can have about 10 to 30 employees. These employees need clear lines of communication and authority so they can work with precision and agility.
When the accounting structure of a business is clear and less confusing, it attracts and retains top talent, which is important in sustaining the growth of your business.
Here is the organizational structure for accounting department of a medium-sized business.
A medium-sized business can have one or two partners or owners who are responsible for its strategic direction. They also do the following.
Managers oversee the work of accountants and ensure projects are completed on time. Here, the best business structure for an accounting firm should have at least two managers. Other duties include:
Accountants and associates perform accounting tasks like daily, weekly, and monthly processing of income and expenses. They also:
Office managers or admin assistants ensure office work runs smoothly. They can also perform HR duties like managing new staff and helping them register for training. Other duties include:
The organizational structure for an accounting department in a large firm can have more than 30 members. With such a large team, there’s a need for proper communication to ensure accurate and timely reporting from one level of the corporate accounting department structure to the next.
The accounting structure of a company with multiple partners can be complex. So, it’s important for partners to clearly understand their roles, which include:
The directors in large accounting firms oversee the completion of client projects and report to specific partners. They also do the following:
Accountants in large firms are divided into teams. The team leader is responsible for ensuring projects run smoothly. They also do the following:
Accountants carry out everyday accounting duties and responsibilities. They also do the following.
Supportive staff ensure everyone in the accounting team structure works smoothly. They manage supportive services, including:
When designing the accounting department structure of your team, you need to clearly understand the functions of each member. Know their roles and responsibilities and who they should report to.
Also, consider what you hope to achieve in the future and how it might affect the accounting team structure.
The accounting department structure should make it easy for employees to align with the vision, mission, and goals of the organization.
For example, the organizational structure should enable teams to coordinate their efforts towards a common goal through reporting, decision making, or resource allocation.
If you have future plans to offer services in a specific area, you can consider creating an organizational structure for the accounting department. For example, you may want your team to provide more tax-related services.
For that reason, it’s better to have a dedicated team on the accounting firm organizational chart. The team will specialize in tax returns.
Any organizational structure, including a CPA firm structure, needs a strong information flow that fosters transparency and builds trust. When there’s trust, employees communicate freely with the leadership. There’s more engagement and better work performance.
To encourage workflow, ensure the organizational structure for the accounting department has clear information-sharing methods, reporting lines, and regular meetings.
A flexible accounting department structure lets you quickly adapt to the ever-changing market needs.
Adaptability is crucial to the survival of your accounting business. It lets you review and restructure so that you can accommodate new market trends and stay relevant.
Organizational structure for the accounting department needs a refreshing, simple software for accountants to collaborate, store, and manage information.
An all-in-one software solution makes it easy for your team to complete tasks fast and collaborate seamlessly with colleagues.
The organizational structure of the accounting department determines the success of any business. Whether your business is small, large, or medium, you need to clearly define the roles of each team member and create a structure that’s functional, flexible, and relevant to the needs of your business. Moreover, implementing best practices in the accounting department structure unlocks the full potential of your team. Also, remember to leverage modern technology that offers an all-in-one solution. Request a demo.