Functions of Financial Manager

Posted on Tuesday, September 22, 2009
This was posted in Accounting and Finance

The financial manager performs the following functions:

1. Finance manager manages the funds in such a way to ensure their optimum utilisation with the available resources.

2. He forecasts the requirement of funds for both short term and long term purposes.

3. He also actively takes part in budgeting, risk management and financial reporting.

4. He makes financial reports, have and eye on profits and losses, etc.

5. He decides how much of the firm’s profits should be invested, how much should be given to the shareholders in the form of dividends and how much should be kept as reserves.

6. He also monitors the cash flows, prepares accounts and works on financial models.

7. He decides what type of capital structure is required be the company and decides whether to raise funds from loans/borrowing or from share capital.

8. He also ensures that adequate funds at cheap rates are supplied to various parts of the organization at the right time.

9. He constantly reviews the financial performance of various units of the organization.

10. He also ensures that no excess cash is lying idle.

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