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Finance Manager – Functions - Financial Management – Nature And Scope
Financial Management - Finance – An Introduction
Finance Manager – Functions - Financial Management – Nature And Scope
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Finance manager is an integral part of corporate management of an organization. With his profession experience, expertise knowledge and competence, he has to play a key role in optimal utilization of financial resources of the organization.
Finance Manager – Functions
Finance manager is an integral part of corporate management of an organization. With his profession experience, expertise knowledge and competence, he has to play a key role in optimal utilization of financial resources of the organization. With the growth in the size of the organization, degree of specialization of finance function increases. In large undertakings, the finance manager is a top management executive who participants in various decision making functions. He has to update his knowledge with regard to Foreign Direct Investment (FDI), Foreign portfolio investment, mergers, amalgamations acquisitions, and corporate restructuring, performance management, risk management corporate governance, investor relations, working capital management, derivative trading practices, investor education and investor protection etc.
Forecasting of Cash Flow. This is necessary for the successful day to day operations of the business so that it can discharge its obligations as and when they rise. In fact, it involves matching of cash inflows against outflows and the manager must forecast the sources and timing of inflows from customers and use them to pay the liability.
Finance manager is an integral part of corporate management of an organization. With his profession experience, expertise knowledge and competence, he has to play a key role in optimal utilization of financial resources of the organization. With the growth in the size of the organization, degree of specialization of finance function increases. In large undertakings, the finance manager is a top management executive who participants in various decision making functions. He has to update his knowledge with regard to Foreign Direct Investment (FDI), Foreign portfolio investment, mergers, amalgamations acquisitions, and corporate restructuring, performance management, risk management corporate governance, investor relations, working capital management, derivative trading practices, investor education and investor protection etc.
Forecasting of Cash Flow. This is necessary for the successful day to day operations of the business so that it can discharge its obligations as and when they rise. In fact, it involves matching of cash inflows against outflows and the manager must forecast the sources and timing of inflows from customers and use them to pay the liability.
Finance manager is an integral part of corporate management of an organization. With his profession experience, expertise knowledge and competence, he has to play a key role in optimal utilization of financial resources of the organization. With the growth in the size of the organization, degree of specialization of finance function increases. In large undertakings, the finance manager is a top management executive who participants in various decision making functions. He has to update his knowledge with regard to Foreign Direct Investment (FDI), Foreign portfolio investment, mergers, amalgamations acquisitions, and corporate restructuring, performance management, risk management corporate governance, investor relations, working capital management, derivative trading practices, investor education and investor protection etc.
Forecasting of Cash Flow. This is necessary for the successful day to day operations of the business so that it can discharge its obligations as and when they rise. In fact, it involves matching of cash inflows against outflows and the manager must forecast the sources and timing of inflows from customers and use them to pay the liability.
Raising Funds: the Financial Manager has to plan for mobilising funds from different sources so that the requisite amount of funds are made available to the business enterprise to meet its requirements for short term, medium term and long term.
Managing the Flow of Internal Funds: Here the Manager has to keep a track of the surplus in various bank accounts of the organisation and ensure that they are properly utilised to meet the requirements of the business. This will ensure that liquidity position of the company is maintained intact with the minimum amount of external borrowings.
To Facilitate Cost Control: The Financial Manager is generally the first person to recognise when the costs for the supplies or production processes are exceeding the standard costs/budgeted figures. Consequently, he can make recommendations to the top management for controlling the costs.
To Facilitate Cost Control: The Financial Manager is generally the first person to recognise when the costs for the supplies or production processes are exceeding the standard costs/budgeted figures. Consequently, he can make recommendations to the top management for controlling the costs.
To Facilitate Pricing of Product, Product Lines and Services: The Financial Manager can supply important information about cost changes and cost at varying levels of production and the profit margins needed to carry on the business successfully. In fact, financial manager provides tools of analysis of information in pricing decisions and contribute to the formulation of pricing policies jointly with the marketing manager.
Forecasting Profits: The Financial manager is usually responsible for collecting the relevant data to make forecasts of profit levels in future.
Measuring Required Return: The acceptance or rejection of an investment proposal depends on whether the expected return from the proposed investment is equal to or more than the required return. An investment project is accepted if the expected return is equal or more than the required return. Determination of required rate of return is the responsibility of the financial manager and is a part of the financing decision.
Managing Assets: The function of asset management focuses on the decision-making role of the financial manager. Finance personnel meet with other officers of the firm and participate in making decisions affecting the current and future utilization of the firm’s resources. As an example, managers may discuss the total amount of assets needed by the firm to carry out its operations. They will determine the composition or a mix of assets that will help the firm best achieve its goals. They will identify ways to use existing assets more effectively and reduce waste and unwarranted expenses. The decision-making role crosses liquidity and profitability lines. Converting the idle equipment into cash improves liquidity. Reducing costs improves profitability.
Managing Funds: In the management of funds, the financial manager acts as a specialised staff officer to the Chief Executive of the company. The manager is responsible for having sufficient funds for the firm to conduct its business and to pay its bills. Money must be located to finance receivables and inventories, 10 make arrangements for the purchase of assets, and to identify the sources of long-term financing. Cash must be available to pay dividends declared by the board of directors. The management of funds has therefore, both liquidity and profitability aspects.
Forecasting Profits: The Financial manager is usually responsible for collecting the relevant data to make forecasts of profit levels in future.
Measuring Required Return: The acceptance or rejection of an investment proposal depends on whether the expected return from the proposed investment is equal to or more than the required return. An investment project is accepted if the expected return is equal or more than the required return. Determination of required rate of return is the responsibility of the financial manager and is a part of the financing decision.
Managing Assets: The function of asset management focuses on the decision-making role of the financial manager. Finance personnel meet with other officers of the firm and participate in making decisions affecting the current and future utilization of the firm’s resources. As an example, managers may discuss the total amount of assets needed by the firm to carry out its operations. They will determine the composition or a mix of assets that will help the firm best achieve its goals. They will identify ways to use existing assets more effectively and reduce waste and unwarranted expenses. The decision-making role crosses liquidity and profitability lines. Converting the idle equipment into cash improves liquidity. Reducing costs improves profitability.
Managing Funds: In the management of funds, the financial manager acts as a specialised staff officer to the Chief Executive of the company. The manager is responsible for having sufficient funds for the firm to conduct its business and to pay its bills. Money must be located to finance receivables and inventories, 10 make arrangements for the purchase of assets, and to identify the sources of long-term financing. Cash must be available to pay dividends declared by the board of directors. The management of funds has therefore, both liquidity and profitability aspects.
Finance manager is an integral part of corporate management of an organization. With his profession experience, expertise knowledge and competence, he has to play a key role in optimal utilization of financial resources of the organization. With the growth in the size of the organization, degree of specialization of finance function increases. In large undertakings, the finance manager is a top management executive who participants in various decision making functions. He has to update his knowledge with regard to Foreign Direct Investment (FDI), Foreign portfolio investment, mergers, amalgamations acquisitions, and corporate restructuring, performance management, risk management corporate governance, investor relations, working capital management, derivative trading practices, investor education and investor protection etc.
Forecasting of Cash Flow. This is necessary for the successful day to day operations of the business so that it can discharge its obligations as and when they rise. In fact, it involves matching of cash inflows against outflows and the manager must forecast the sources and timing of inflows from customers and use them to pay the liability.
Raising Funds: the Financial Manager has to plan for mobilising funds from different sources so that the requisite amount of funds are made available to the business enterprise to meet its requirements for short term, medium term and long term.
Managing the Flow of Internal Funds: Here the Manager has to keep a track of the surplus in various bank accounts of the organisation and ensure that they are properly utilised to meet the requirements of the business. This will ensure that liquidity position of the company is maintained intact with the minimum amount of external borrowings.
To Facilitate Cost Control: The Financial Manager is generally the first person to recognise when the costs for the supplies or production processes are exceeding the standard costs/budgeted figures. Consequently, he can make recommendations to the top management for controlling the costs.
To Facilitate Cost Control: The Financial Manager is generally the first person to recognise when the costs for the supplies or production processes are exceeding the standard costs/budgeted figures. Consequently, he can make recommendations to the top management for controlling the costs.
To Facilitate Pricing of Product, Product Lines and Services: The Financial Manager can supply important information about cost changes and cost at varying levels of production and the profit margins needed to carry on the business successfully. In fact, financial manager provides tools of analysis of information in pricing decisions and contribute to the formulation of pricing policies jointly with the marketing manager.
Forecasting Profits: The Financial manager is usually responsible for collecting the relevant data to make forecasts of profit levels in future.
Measuring Required Return: The acceptance or rejection of an investment proposal depends on whether the expected return from the proposed investment is equal to or more than the required return. An investment project is accepted if the expected return is equal or more than the required return. Determination of required rate of return is the responsibility of the financial manager and is a part of the financing decision.
Managing Assets: The function of asset management focuses on the decision-making role of the financial manager. Finance personnel meet with other officers of the firm and participate in making decisions affecting the current and future utilization of the firm’s resources. As an example, managers may discuss the total amount of assets needed by the firm to carry out its operations. They will determine the composition or a mix of assets that will help the firm best achieve its goals. They will identify ways to use existing assets more effectively and reduce waste and unwarranted expenses. The decision-making role crosses liquidity and profitability lines. Converting the idle equipment into cash improves liquidity. Reducing costs improves profitability.
Managing Funds: In the management of funds, the financial manager acts as a specialised staff officer to the Chief Executive of the company. The manager is responsible for having sufficient funds for the firm to conduct its business and to pay its bills. Money must be located to finance receivables and inventories, 10 make arrangements for the purchase of assets, and to identify the sources of long-term financing. Cash must be available to pay dividends declared by the board of directors. The management of funds has therefore, both liquidity and profitability aspects.
Forecasting Profits: The Financial manager is usually responsible for collecting the relevant data to make forecasts of profit levels in future.
Measuring Required Return: The acceptance or rejection of an investment proposal depends on whether the expected return from the proposed investment is equal to or more than the required return. An investment project is accepted if the expected return is equal or more than the required return. Determination of required rate of return is the responsibility of the financial manager and is a part of the financing decision.
Managing Assets: The function of asset management focuses on the decision-making role of the financial manager. Finance personnel meet with other officers of the firm and participate in making decisions affecting the current and future utilization of the firm’s resources. As an example, managers may discuss the total amount of assets needed by the firm to carry out its operations. They will determine the composition or a mix of assets that will help the firm best achieve its goals. They will identify ways to use existing assets more effectively and reduce waste and unwarranted expenses. The decision-making role crosses liquidity and profitability lines. Converting the idle equipment into cash improves liquidity. Reducing costs improves profitability.
Managing Funds: In the management of funds, the financial manager acts as a specialised staff officer to the Chief Executive of the company. The manager is responsible for having sufficient funds for the firm to conduct its business and to pay its bills. Money must be located to finance receivables and inventories, 10 make arrangements for the purchase of assets, and to identify the sources of long-term financing. Cash must be available to pay dividends declared by the board of directors. The management of funds has therefore, both liquidity and profitability aspects.
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