Any firm or government organization has at least one or more than one financial managers. These managers are responsible for the major portion of the running business, which includes investments and their rates, preparation of the financial statements, cash management, credit management etc. They not only have to make sure that things are being carried out according to plans, but also they also have to develop strategies that will prove to be more efficient and help the business to manage risk better and make greater returns for both the business as well as the shareholders. The duties of these managers vary with their titles. However, there are some duties that are more or less common or applicable to all the managers. These are:
* Each financial manager has the sole responsibility of the entire department. I am his duty to make sure that all the transactions, cash transactions are taken into consideration while preparing the profit and loss account and balance sheet.
* It is the duty of the financial manager to deal with the four A’s, namely
*Anticipation of the funds or capitalization
*Acquisition of funds, that is Raising of the funds required
*Allocation of funds that is the Investing decisions
*Assessment of funds this is the evaluation of the financial activities
* The preparation of the cash flow statements, profit and loss account, balance sheet
* The duty of bridging the gap between the investors and the savers of funds.
* Arrange for short term as well as long term funds that is working capital requirements and capital budgeting requirements
* Financial feasibility of projects are to be calculated before hand in order to find out the difference between the investment and returns
* Cost minimization and profit maximization Achievement of organizational goals
* Dividend decisions
* Finance decisions
* Investment decisions
* Maximization of shareholders wealth
* Continue operation in a socially acceptable manner
* Corporate social responsibility
* Knowledge over accounting, auditing, taxation, company law etc.
Thus, it can be seen that the duties and responsibilities of a financial manager is so vast that almost the complete functioning of the organization involves some or the other decisions that are required to be taken by the financial manager. This is because finance is the backbone of any industry, and the management of finance plays a vital role in the future prospects of the business.