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What Are The Functions Of A Financial Manager?

16 Answers

Ray Hueston Profile
Ray Hueston answered
The main function of a Finance Manager (FM) is to provide materially accurate information to the general public, shareholders, stakeholders and the management of an enterprise, be this a joint stock (limited liability) Company, social enterprise/charity or community association, such as a sports club or a parent/teacher organisation.  This information will be of two types  The first will be management accounts that provides information from which decisions can be made, showing the success - or otherwise - of the organisation in achieving it's goals and targets.  The second is financial accounts that is more formal and fulfils legal and moral obligations of organisations.  This will include profit and loss accounts at the end of a trading period, together with a balance sheet showing the assets and liabilities of the organisation.  The FM, working with auditors and accountants, will complete and file tax returns and other information that is required by the Authorities that oversee the operation of the organisation.  This type of information is usually produced annually, but for very large organisations, such as Corporations with operations all over the world, and whose shares are quoted on Stock Exchanges, data is often produced at the end of each quarter-year to ensure information is shared, and from which investors can make reasoned judgements.  The format of the various reports can be quite simple - useful in small organisations, such as social clubs, but get more complex the larger the organisation.  A second key function of an FM is to maintain control over the organisation.  This is achieved in a number of ways.  Target setting is the usual process, with objectives, defined as a budget set for each part of the organisation, showing how much revenue is required to support the cost structure, so that a trading profit is made at the end of the period. The FM has to work with all the other Managers in the organisation to make sure the objectives are reasonable, are understood and the whole team agrees with them.  This process is very complicated and difficult, but once achieved helps the whole organisation.  Once a budget is agreed, the FM can monitor progress by measuring what is actually happening against the plan, showing other Managers if they are on track, or some action needs to be taken to increase sales to generate more revenue, or stop spending to cut costs.  The FM maintains control by determining processes and ways of doing things.  For example, to spend money on something, it is unusual to have a process that establishes whether good value is being achieved by requiring the purchaser to look at different ways of buying what they want, getting different quotes from different suppliers.  Processes like these help maintain control by having an audit trail that supports the purchase decision.  Other functions will include those needed to be a manager, responsible for the people in the finance team, so good interpersonal skills are required, together with the ability to prioritise and organise.
Anonymous Profile
Anonymous answered
The functions of Financial manager are....
1. Planning and Forecasting
2. Financing Decision
3. Investment Decision
4. Dividend Decision
5. Financial negotiation
6. Cash Management
7. Evaluating financial performance
8. Dealing with relevant parties in the Financial Markets
Anonymous Profile
Anonymous answered
1.To make investment decisions.
2.To make financing decisions.
3.To ensure a positive cash flow; so that cash inflows
exceed cash outflws.
4.To ensure profitability; so that income exceed
expenses.
5.To manage solvency.
Ellie Hoe Profile
Ellie Hoe answered
Finance Managers do lots of thinks and look all the financial parts of the company. They are responsible for allocating financial resources of the company. They also activity take part is budgeting, risk management and financial reporting. Other important finance manager tasks are have an eye on profits and loss, make financial reports, making certain plans to lesson the financial risk and so on.
thanked the writer.
Anonymous
Anonymous commented
I have appriecated the attempt. Keep up Darius Birabwa, student Uganda Christian University
Anonymous Profile
Anonymous answered
Financial manager performs lot many functions which can be broadly classified into :
1.performing financial analysis
2.making investment decisions
3.making financing decision
Anonymous Profile
Anonymous answered
The five basic corporate finance functions are described as those functions related to;
1) raising capital to support company operations and investments (aka, financing functions);
2) selecting those projects based on risk and expected return that are the best use of a company's resources (aka, capital budgeting functions);
3) management of company cash flow and balancing the ratio of debt and equity financing to maximize company value (aka, financial management function);
4) developing a company governance structure to encourage ethical behavior and actions that serve the best interests of its stockholders (aka, corporate governance function); and
5) management of risk exposure to maintain optimum risk-return trade-off that maximizes shareholder value (aka, risk management function).
Evelyn Vaz Profile
Evelyn Vaz answered
Some of the main functions of a Finance Manager includes setting up financial goals, planning strategies to reach these goals, keeping a high check on profits and loss, preparing financial reports, investing funds, monitoring cash flows, advising the rest of on mergers and acquisitions, accounting and auditing, developing certain kind of procedures in order to minimize financial risk and establishing lending criteria. In short, financial managers handle all the financial dealings and accounts of the company.

The whole lingo is to add value to the company by setting the right financial goals. They handle all the financial accounts with rigorous auditing. They decide on how much of the company's profits should be returned into investment and also how much should be reinvested into the organisation. Financial managers are pillars to your new organisation or a step to the growth of your organisation.

Anonymous Profile
Anonymous answered
Do you have the diagram of the functions of a financial manager? Can you explain it?
janu1987 klce Profile
janu1987 klce answered
Role of financial manager in the various functional areas are
in planning - the role is to estimate the budget.
In organising- the role is allocate the money .
In staffing -the role is to determine the salaries and wages.
Controlling and directing -the financial manager role is to allocate verify and direct the funds in the right ways for the effective out put
Anonymous Profile
Anonymous answered
The functions of finance manager are to arrange the appropriate amount of finance to the org. When it needed.manage the funds of org.in efficient manner and made the appropriation of the income of the org.
Anonymous Profile
Anonymous answered
1.setting up goals for the organisation.
Device strategies these set goals can be reached.
Plan, control, direct, organise the monetary resources of the organisations.
Muddassar Memon Profile
Muddassar Memon answered
The main task of a financial manager is to supply investment advice along with financial planning services. Basically the financial manager helps the consumer to maximize their net worth via appropriate asset allocation.

Financial managers usually use stocks, bonds, mutual funds and insurance products to fulfil the requirements of a client. Quiet a few financial managers accept a commission imbursement for the different types of financial products which they negotiate for, even though "fee-based" development is gaining popularity in the market.

One of the vital services which financial managers supply is the retirement planning. The financial managers have high scale knowledge in the field of budgeting, forecasting, taxation, asset allocation, etc. Financial managers may even help their client in investing for both long term as well as short term basis.
Aisha Profile
Aisha answered
The financial manager is responsible for planning, organizing, directing, controlling and evaluating the operations of financial and accounting departments. The role of financial managers are as follows:
- Development and Implementation of financial policies and systems
- Establishment of performance standards
- Preparation of various financial reports for senior managers
For details see the link below:
www23.hrdc-drhc.gc.ca

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