Of the various functions performed by a finance project manager financial requirements and smooth sailing of the company has to be foremost in their mind. Financial functions are classified into two groups: Executive functions and Incidental functions
Execution and planning of administrative skill are needed for the functioning of executive finance whereas incidental finance demands clerical and routine work, required for carrying out financial decisions.
The functions of an executive finance are:
1] To establish asset-management policies – This includes taking decisions on the type of insurance coverage the company is planning to carry out. Among many other things the finance project manager must be aware of the amount of cash that will be blocked in various non-cash assets. Formulating a consistency and sound policy is a pre-requisite of finance management. They must also participate with marketing executives to make decisions involving machinery, purchasing or renting a place and carrying factory supplies.
2] Verifying the distribution of net profit – After tax payments a corporation has three choices 1] Pay shareholders their dividends. 2] Distribute profit-sharing plans to people. 3] Retain a part of the earnings to expand the business. In case of the second alternative, they are paid on the basis of contract or for a fixed policy.
3] To estimate and control the flow of cash - Flow of cash depends on the degree of sale. The most important responsibility of a finance project manager is to keep a track of cash supply and make smooth arrangements for the same at the proper time. The finance project manager needs to balance the dilemma that is created between profitability and liquidity.
Since the flow of cash is not predicable, the finance manger has to keep enough cash in hand to clear bills and other expenses.
4] To time the sources and needs of outside financing – The managers need to make a proper judgment of when and how long the funds will be required and how well it can be raised and the sources from which it will be repaid.
5] Checking the financial performance – A proper analysis or what happened would help in improving the techniques, procedures and standards of finance function.
The incidental functions are: 1] Safeguarding cash balance and supervising disbursements, cash receipts and other papers which are valuable.
2] Looking after the mechanical aspects of financing.
3] Reporting and keeping records
4] Providing assistance to finance executives to execute their roles well.