Role of a Financial Manager

He/she handles finances and is at the heart of a company’s operations. A good manager can change the fortunes of a business with proper planning, monitoring, and timely guidance. The opposite is true of an incompetent finance manager who can bankrupt even a profitable firm. A financial manager is not only good for a private organization but also for a public and non-governmental organization as long as they are funds involved.

Role of a Financial Manager

He can influence the firm’s fortunes by determining the overall development of an organization if allowed to do his role. In his role, the finance manager asks

  • How large should the company be and how fast should it get there?
  • How do I raise the funds to get it there?
  • How should the assets be financed?

Following Are The Main Functions of a Financial Manager:

  • As stated a financial manager occupies an important position and is expected to manage the funds in such a manner as to ensure their proper utilization.
  • He is to point out situations where funds are being kept idle or proper use of funds is not made
  • Estimating business requirements of funds.
  • Deciding the capital structure.
  • Make investment decisions.
  • Make dividend pay-out decisions.
  • Keeping in touch with the stock market if the company is listed.
  • Cash management.
  • Evaluate financial performance with respect to return on investments.
  • Handle financial negotiations with banks and financial institutions.
  • Maximize wealth for company shareholders.
  • Manage company credit.
  • Tax management.
  • Manage foreign exchange.
  • Handle corporate accounting.

Overall the financial manager and his team should make a good investment, financing, and asset management decisions for the organization.

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About Sonia Kukreja

I am a mother of a lovely kid, and an avid fan technology, computing and management related topics. I hold a degree in MBA from well known management college in India. After completing my post graduation I thought to start a website where I can share management related concepts with rest of the people.