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So, what departments are needed to run a business? All businesses, no matter what the size, need some sort of internal organizational structure to operate efficiently and properly. Businesses without a set of organizational structures will have problems implementing company policies and operating at different efficient production levels. Whether a company is selling, manufacturing, or something else, certain departments are key to many basic operations.

As the owner of a small business, you may at first fill most of these roles yourself. But as your business continues to grow, you'll want to leave these responsibilities to your trusted employees. This is the five main departments every business will have.

Company Administration Department

The chief executive officer; also known as or called the company president, and any other directing managers involved in making decisions for the company are a part of the administration department. Businesses need managers to oversee a number of employees and implement any company directives created by the policies. Managers will also typically be in charge of interviewing and hiring new employees for the company.

Accounting And Finance Functions

The accounting department handles the bookkeeping during the fiscal year. All revenue used, disposed and gained; expenses, payroll and company equity are tracked by the accounting department and reported to the governmental Internal Revenue Service at the end of the company's financial year. The accounting department also tracks accounts that are payable so that all of their clients are paid for any services or products. Accountants, using in house software, will typically prepare income statements, cash flow statements, general ledgers and balance sheets for their manager and then passed to the board of managers.

Design, Marketing And Advertising

This department in a business is responsible for developing product packaging, pricing, and any other creative processes needed in marketing and selling the products, brand or feature. This is mainly for informing potential customers of the company's offerings. Additionally, the department may conduct further research to discover the needs of the consumers. Some businesses may need another form of marketing altogether due to the nature of their products or services. Many small to medium-sized businesses also try to broaden their potential when customers with digital marketing. There are businesses on the web that offer expert PPC agency advice on how to drive traffic and affiliate your business with the market deals of the day.

Production And Inventory

The production department and company buyers, order inventory for production when required, this is so it fulfils production orders specified by management and coordinates with the marketing and advertising department to make changes to products. Thus drastically cutting down any potential for mistakes, overproduction and waste.

The Sales Department

Every business needs a sales department or team. Sales departments are usually needed within companies that sell retail or wholesale items to other businesses or consumers. Sales departments coordinate their sales teams to build on customer relationships to meet particular revenue goals and pitch any new products. The sales force may use a "push" or a "pull" method for attracting new customers.

The pull method typically involves placing a salesman in a physical store to sell products, sometimes a tool company will send a van to companies who may require said tools and will be able to show the stock within the van. Sales departments using the push method will usually instruct their sales team to call, email or visit prospective customers.

Do you run a small to medium size business? Or are you thinking about starting one? Post your ideas and questions below and share some tips on how you run all of the businesses departments.

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