The service of granting capital or funds for business or private reasons can be coined under an umbrella term - Finance. Better known as money management, this is studied in detail by economists and business pundits. Another way to define finance is the management of capital and funds required for business and private activities. Management of finances has over time become vast and developed into a specific branch within the economic sector and is handled by dedicated finance managers.
Simply put, the finance managers arrange money which is lent to businesses or private individuals. For this they use either money already available through company accounts or from external lending sources. The job also involves optimization of funds to cut costs wherever necessary and ensure highest returns.
It can be truly said that finance management governs most of the world’s activities and bad finance management can lead to devastating results. Its effects immediately start showing up as conditions worsen in procurement, production and sales and almost every sphere of business activities. The finance manager's prime job is to increase profits whilst maintaining minimum risk. So, there is a high level of stress involved with this job.
Lee Iacocca, one of the most famous management gurus, said that finance managers are Bean-Counters who look at the expenditure part with a rather pessimistic view. A finance manger likes to see where he is and has no interest to look towards the future. Thus, he is poles apart from a sales manager who is consistently striving to reach future goals. The responsibilities of a finance manager mainly revolve around providing financial support and advice to customers or colleagues in their organization and help make well informed and sound financial decisions.
The organizations where finance managers work can be extremely diverse and can vary from public to private sector. These premises can include financial Institutions, trusts, Charities, Universities and Multi-national Corporations. Companies need to know well in advance the financial implications about any business decision to be taken. In these situations, financial managers come in handy and also make sure all financial regulations and statutory legislations are followed.
Obviously, there are many responsibilities and tasks apart from above mentioned which a finance manager has to perform. But one can sum up his job as that of tasks revolving around managing organization’s finances. With recession almost over, companies are again sporting huge monetary books. And great finance manager jobs are on the anvil.