Financial Manager Responsibilities

Managers involved in many areas within an organization such as production, marketing, engineering and human resources among others make or participate in financial decisions at least occasionally. The person associated with financial management function is usually a top officer of the firm such as a vice president of finance of chief financial officer. The financial manager must have the flexibility to adapt to external factors such as economic uncertainty, global competition, technological change, volatility of interest and exchange rates, changes in laws and regulations, and ethical concerns. As the head of one of the major functional areas of the firm. The financial manager plays a pivotal leadership role in a company’s overall efforts

Especially the long term investment activities. He needs to understand the costs affected the context in which a finance manager performs his functions.

• Coordination and control risk management:

A finance manager focuses on the generation of the funds and their allocation to various organizational activities. The various organizational activities are to be coordinated and controlled to ensure cost effectiveness and maximum efficiency in terms of value generation. A very important function of a finance manager is to understand risk management of the business faces. The various risks faced by the firm are to be managed proactively and necessary arrangement s should be made to eliminate, reduce and avoid them. He also needs to analyze and categorize the various risks faced by the business.

• Understanding the finance market and performance

He procures funds from the best available sources and ensures their proper employment at all times, which requires synchronizing the inflows and outflows of funds of the firm. The finance manager has to ensure adequate supply of funds to maintain sufficient liquidity and to enable the firm to meet its currently maturing obligations on time. If a firm fails to meet its current obligations on due dates, it is technically insolvent and may face liquidation.

And also to formulate a credible, comprehensive set of projections reflecting your compahy’s anticipated financial performance. If these projections are carefully prepared and convincingly supported, they become one of the most critical yardsticks by which the business’s attractiveness is measured. The rest of the business plan communicates a basic understanding of the nature of the enterprise, the projected financial performance address itself directly to the bottom line interests and concerns of both you and the reviewer. It’s here that the investor discovers what sort of return to anticipate and the lender learns about the borrower’s capacity to service