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Functions of Office

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An office is a performing place of the organization. It has to perform a number of functions in order to achieve the objectives of the organization. Some of them are listed as follow:

  1. Receiving information
    An office is a place where all the information of an organization is gathered from the internal as well as external sources. It collects internal information from sources such as office personnel and departments like production, marketing, finance, accounting and personnel departments such as production, marketing, finance, accounting, and personnel department. It collects external information from the sources such as newspaper, e-mails etc.

  2. Recording information
    The information that is received from various sources such as internal and external sources may have various priorities. The office records the information that is important and useful for the organization. The information is recorded in a systematic manner according to their priorities in the books of account.

  3. Processing information
    The information which is received and recorded must be well processed as all the information cannot be important for planning and decision making. The office should process the information in a suitable form which makes it easy to locate the files in an order. The act of processing information involves calculating, grouping, tabulating, diagrams, drawing charts, summarizing and analyzing the information.

  4. Communicating information
    The office needs to communicate the obtained information with the respective personnel and departments inside the organization. Sometimes, it needs to communicate with outsiders such as customers, suppliers, and government outside the organization as per their requirements. Such information is communicated through fax, telephone, internet, e- mail, etc.

  5. Recording financial transactions
    The office keeps a systematic record of all the financial transactions in the book of accounts which helps in determining the financial position of the office. It is kept in the book of journal and ledger.

  6. Handling visitors
    Since an office is a representative of the whole organization. The office needs to handle all the visitors properly. It establishes a separate section called reception for better services and satisfaction of the visitors and customers. Better services and satisfactions of the visitors and customers helps in increasing the goodwill and promoting sales of the organization.

  7. Safeguarding assets
    The office needs a lot of assets for the operation of the organization for which a number of assets have been purchased. It needs to utilize the assets in a proper way and also help in safeguarding them. A proper record of the value and condition of such things are needed to be presented in front of the respective personal.

  • The office receives various types of information from internal and external sources. 
  • The information received from internal and external sources may be different in respect of its priority.
  • The office records that information which is useful and important for the organization. 
  • The office purchases necessary assets, utilizes them properly and also safeguards them.
  • The office keeps systematic records of all the financial transactions in the books of accounts like journal and ledger. 

Questions and Answers

Click on the questions below to reveal the answers

  • The information received in the office is recorded in a systematic manner in the ______.


    all the options are correct


    entry book

  • Which one of them is the function of an office?

    Receiving information

    All the options are correct

    Processing information

    Recording information

  • The act of processing information involves ______ the information.

    all the options are correct
  • The information received in the office is communicated through ______.

    all the options are correct




  • The systematic process of recording financial transactions helps in determining ______.

    actual loss of the organization

    actual profit of the organization

    actual profit or loss of the organization

    neutrality of the organization

  • The office does not record that information which is ______ for the organization.





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