A financial manager performs his duty in the finance department of the company. The finance manager is responsible for the financial health of an organization. For example, they can prepare financial reports that outline their long-term investment strategy in order to attain their objectives.
The finance manager has basic leadership skills, technical skills, communication, and problem-solving skills, to resolve the issues present in an organization related to finances. A finance manager analyses an organization's financial operations and provides financial advice to the company. They can analyze reports and keep an eye on the accounts on a daily basis.
Role of Finance Manager in an Organization
A financial manager is responsible for a variety of tasks and responsibilities. It is a difficult task for a financed manager to address all of those intricate issues because even a minor error may cause serious difficulties for the customers and the organization. As a result, a financial manager is a responsible individual who has expertise dealing with all conditions efficiently and striving to improve the business.
The finance manager carries out various functions:
- Financial planning
- Investing money
- Raising money
Following are the functions of financial manager
1. The Amount of Capital Required
The most important task of the financial manager is to purchase the fixed assets and meet working capital requirements so that the organization does not face complications in this matter. The financial manager introduces modernization and expansion of business in the company, they also estimate the points required for both short term and long term. When the financial manager works according to the plan, the business runs smoothly and grows over time.
2. Management of Funds
The financial manager decides the sources from which he wants to raise the points. The management can raise finance from various sources such as shareholders, banks, financial institutes, public deposits etc. Financial managers take efforts to satisfy the needs of the business, which requires negotiations with financial institutions. The procurement of funds is influenced not only by the cost of acquiring funds, but also by other factors such as government policies, investor preferences, and so on. A financial manager also maximizes the return on investment by making investment decisions while keeping three key concepts in mind: safety, profitability, and liquidity.
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3. Management of Cash
It is the utmost duty of financial manager to manage the Cash and other assets of the company. He manages the inflow and outflow of cash and analyzes whether there is a shortage. He controls the company's money and handles material procurement, payroll payments, and sales.
4. Financial Control
The financial manager examines an organization's financial performance. The ultimate assessment metric is the return on investment. Financial managers control finances and evaluate the budgetary control, cost control, internal audit, ratio analysis, and many more.
A financial manager is a crucial character in an organization. A financial manager must estimate the amount of capital required and determine the capital structure. The finance manager controls finances and manages the cash of an organization, thereby playing an essential role in the requirement of the company’s utilization of funds, disposal profits and surplus.