0
Hello everyone, today we are going to give you a brief idea about who is financial manager? Financial managers job responsibility. Previously we discussed what is finance? Definition meaning and career opportunities in finance you might want to see.  

who is financial manager

Financial staffs are the financial managers who work within the
who is financial manager
finance department of an organization. Financial managers are the body of an organization they plan how the organization should operate, what should organization acquire, how much cash organization should keep on hand etc. Usually, we see two types of financial manager in an organization: one is treasurer and other one is controller. We will discuss who is controller and treasurer later sometime. 

Financial managers job responsibilities

Effective cost control and internal control are what separate a highly successful business from a less-successful business. Financial managers are responsible for making these differences. Depending on the size of the organization the responsibility of a financial manager may vary. There are some specific activities which a financial staff usually performs such as:
financial manager job responsibilities types
  • Forecasting and planning: Forecasting and planning are the key component of making your business successful and financial managers perform these activities. Forecasting and planning means determining your organization future operation, problems and opportunities. To do it financial staff must interact with employees of other departments within the organization such marketing, management, etc. as they look ahead and lay the plans that will shape the firm’s future. Preparing a good financial forecast enables you to assess your likely sales incomes, costs, evaluating financial risk, and develop an understanding of available funding. A financial forecast is important if you want to raise funds from a third party such as bank.
  • Major investment and financing decision: Major investment and financing decision explains how to spend money and how to borrow money. These two are the most important decision that a financial staff makes. The overall goal of this investment and financing decision is to maximize shareholder profit. Investment decision relates to carefully selecting an asset in which organization will invest. An organization has many investment opportunities, but not all will bring the same amount of profit. So investment decision means investing in an asset or purchasing an asset from which organization will gain maximum profit. The second most important decision a financial staff makes is the financing decision. The financing decision involves how to raise funds, from where to raise funds, how much to raise from each source. There are two ways an organization can raise funds: from company’s own money such as issuing securities or from the external funders such taking debt. 
  • Coordination and control: The financial staff must interact with other employees of the organization to ensure that organization is performing in the best efficient way. Every decision within an organization needs financial implication and all managers—financial and others need to take this into account. Their decision affects the organization inventory policies, availability of funds etc. For example, marketing decisions affects the sales growth as well as influences investment requirements.
  • Dealing with the financial markets: Financial staff responsibility to deal with the financial markets such money market, capital market. Money market is a market from which an organization can get short term highly liquid debt securities. Capital market is the opposite of money market. Capital market includes long-term debt and corporate stocks. These markets affect each firm. Investors either make money or lose money from these markets.
  • Risk management: Any form of business faces some risk. These risks can be the natural disaster such as flood, fire etc. or can be the uncertainty of commodity, stock market, interest rate etc. Most of these risk can be minimized by purchasing insurance. And financial managers are responsible for an organization’s overall risk management program. The financial manager is responsible for identifying the risk and finding ways to manage them and then applying most efficient manner.
Conclusion: Financial managers makes decision what an organization should purchase, how it should be financed, and how the organization should operate. If these responsibilities are performed optimally then financial managers can help maximize the value of the organization.
Who is financial manager? Financial managers job responsibility
Item Reviewed: Who is financial manager? Financial managers job responsibility 9 out of 10 based on 10 ratings. 9 user reviews.

Post a Comment

Dear readers, after reading the Content please provide feedback in a Polite Language so that we can improve our contents. Your opinion much more valuable to us. Thank you!!