Role of the Financial Manager
ROLE OF THE FINANCE MANAGER
According to the changing business environment the role of the financial manager has undergone a sea change.During 1980's the finance manager had a traditional role to play , his task was mainly confined to procuring cash, maintain accurate records , prepare reports on the company's current financial position and performance and manage cash to save the company from insolvency.However this role gradually transcended and has now changed into a gigantic task with the growing complexity in the business environment, globalization and also with the enlargement of the size of the business.
Today's finance manager is well versed with the overall financial functioning of the organisation and is capable of dealing with the problems and decisions dealing with the management of the financial operations.Now he is very much involved with with the total amount of capital employed by the firm , with the allocation of funds in various financial projects and financial activities and is less concerned with the procurement of funds and now the finance manager is more concerned if at all the funds have been properly utilised.Therefore the role of the finance manager is much exact.In order to tackle the functioning of this financial operations he has to have a broader range of skills, a strong grasp on the nature and scope of all firm and financial operations and a thorough understanding of how the firm operates in averse situations and operates in a market place.Therefore their task are more centralised on the liquidity and profitability of the firm.
Today, undoubtably the role of Financial managers have not only become exciting but also challenging, because it entails effective and quick decision making process, tact, requisite skill, intelligence and foresight in order to match the fast moving and technologically complex corporate environment.There can be problems at times where it becomes increasingly alarming for the company to function smoothly, the problems can relate to:
Selection of new proposals for capital investment, Dividend declaration, Procurment of long term and short term capital, optimal use of working capital and increase in the value of firms common stock.Therefore the role of the finance manager centres around efficient planning and control of flow of funds right from inflow to outflow of funds.The modern financial manager has very important role to -play in the effective management of the company.He has to have knowledge of financial markets and financial statements in order to take financial decisions or any corrective measures, concerning the firms operation.The financial manager is highly specialised job today , no area of management can function smoothly unless its financial aspect is sound and effectively managed, the responsibilty totally rests with the Finance manager.Hence shows how important a Finance manager is to the organisation.
RENITA IS A LECTURER IN ONE OF THE TOP MOST UNIVERSITIES IN INDIA.SHE IS A POST GRADUATE IN BUSINESS ADMINISTRATION, SHE TEACHES ECONOMIC ANALYSIS, ORGANISATIONAL BEHAVIOUR AND HUMAN RESOURCE MANAGEMENT.
Article Source: ArticlesBase.com
