The Necessary Departments in Small Businesses

Global Resources LLC offers industry expertise in business operations. All businesses need some sort of organizational structure to operate properly. In fact, businesses without a set organizational structure have problems implementing company policies and operating at efficient production levels.  

Every business needs a functional organization, regardless of size.  Even businesses which are too small to have the departmental structure outlined below, need to assign the functional responsibility to someone in the business rather than having the business owner assume all the responsibility.  A business owner who wears too many hats usually fails in his larger responsibility for being the strategic planner for the business simply because he has too many day-to-functions of the business consuming his time.  

Below are departments, or functions, that many small and medium-size businesses must have or assign responsibility for:

• Administration- The chief executive officer, who also may the company president, and any other managers involved in making decisions for the company are a part of the administration department. Businesses need managers to oversee employees and implement company directives created by the president. 
• Accounting - The accounting department handles the bookkeeping for a business during the fiscal year. All revenue, expenses and company equity are tracked by the accounting department and makes the necessary reports to the Internal Revenue Service at the end of the company's fiscal year. The accounting department also tracks accounts payable so that all clients are paid for services or products. Accountants typically prepare income statements, cash flow statements, general ledgers and balance sheets for the company.
• Marketing and Advertising- The marketing and advertising department is typically responsible for developing product packaging and creative materials for the sale of the company products. Additionally, the department may conduct research to discover the needs of its customers. 
• Production - The production department orders inventory for production when needed, fulfills production orders specified by management and coordinates with the marketing and advertising department to make changes to products.
• Sales- Sales departments are needed in companies that sell to other businesses or consumers. Sales departments coordinate their sales force to build customer relationships, meet particular revenue goals and pitch new products. 

To learn more about us and / or to schedule your complimentary appointment with the business experts at Global Resources, call us at 855-338-0266.