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.
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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