Role of the Financial Manager
It can be said that an accountant evaluates bookkeeper records and shows the results as losses and gains to show the progress or failures of a company and also its future limitations and potential. On the contrary, a financial manager's role is to maximize the value of a company. In order to achieve this, various types of financial statements are required to provide to investors. In the past, the role typically focused on generating and reinvesting finance capital. Almost every firm, government agency, and organization has one or more financial manager who oversees the preparation of financial reports, direct investment activities, and cash management strategies. However, as computers have reinvented how data is recorded and organized, many financial managers are spending more time developing strategies and implementing the long-term goals of their organization. The role of the financial manager is also changing in response to technological advances that have significantly reduced the amount of time it takes to produce financial reports. Financial managers now perform more data analysis and use it to offer senior management ideas on how to maximize profits and increase shareholder value. One of the greatest concerns for companies and their employees today is increasing shareholder value. Companies are reinventing business approaches typically focused on efficiency and moving toward focus on effectiveness instead. Traditional methods no longer deliver all the necessary metrics and information needed to effectively manage a business. In today's market, companies need to take a broader look at their strategy, operations and competitive environment. Senior management needs a coherent method to share a common vision and motivate strategically aligned behavior. The pay-off is increased value. Shareholder value is reflected in corporate financial performance and market share performance. Financial performance is achieved through...
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