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Role of Financial Manager

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Role of Financial Manager
Role of Financial Managers
The financial manager plays an important role in the functional areas of finance. The assignments of finance functions to the financial manager depend upon size of the business enterprise. The larger the business enterprise- the greater degree of specialization of tasks is needed. The financial manager is the key persons in any business enterprise. The function of finance manager includes budgeting and investing funds, accounting, products pricing and forecasting. The financial manager is engaged in the analysis, planning and control of the financial activities of the enterprise.

The function of financial manager may be stated as under-

FINANCING AND INVESTING: The financial manager performs the financing and investing function of an enterprise. He supervises the cash and other holding of the firm. He arranges for raising additional funds as per the requirement of the enterprise.

FINANCIAL ANALYSIS: Financial manager makes analysis of financial condition of the firm. Financial analysis ensures the effective and smooth functioning of any enterprise. Financial analysis is made to judge the propriety of the trend of share market prices, etc.

DIVIDEND DECISIONS: The financial manager takes dividend decision. For taking decisions in respect of dividend, the following factors are considered-availability of cash, tax position of the share-holders, trend of earnings, etc.

ACCOUNTING AND CONTROL: The financial manager arranges for the maintenance of financial records. He controls the financial activities of the enterprise. He identifies deviations from planned and efficient financial activities.

FORECASTING AND LONG-RUN PLANNING: The finance manager forecasts costs and technological changes. He studies the market conditions and forecasts the funds needed for investment. He calculated the estimated returns on proposed investment project and forecasts about the demand for the products of the enterprise.

CASH MANAGEMENT: The
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