He/she handles finances and is at the heart of a company’s operations. The financial manager is responsible for supervising and handling the company’s financial reports, investment portfolios, accounting and all kinds of financial analyses. It is important to know the financial management functions of a financial manager to manage resources. Financial management may be defined as the area or function in an organization which is concerned with profitability, expenses, cash and credit, so that the "organization may have the means to carry out its objective as satisfactorily as possible;" the latter often defined as maximizing the value of the firm for stockholders. One, the investment decision. Finance managers analyze every day financial activities and provide advice and guidance to upper management on future financial plans. One of the most important functions of a financial manager is to project and manage the company’s cash flow. Plagiarism Prevention 5. For this purpose, he should understand various methods of valuing shares and other assets so that correct values are arrived at. Two, the financing decision. Handle financial negotiations with banks and financial institutions. Report a Violation 11. Cash is the best source for maintaining liquidity. The funds should be used in the best possible way. profit and wealth maximization. That the manager is responsible for allocating funds and tracking the sufficient funds available for a company to perform its business smoothly. It applies management ethics to the financial resources of a company. Financial Planning and Forecasting. At present, a financial manager occupies a central position in any business firm and financial management involves the application of all managerial functions such as planning, organising, directing, and controlling in the finance function sine qua non of industrialisation. Essays, Research Papers and Articles on Business Management, Finance Functions of Business: Meaning and Objectives, Top 7 Functions of Finance Manager | Manager | Financial Management, Essay on Financial Management: Objectives, Scope and Functions, Essay on the Sources of Business Finance | Finance | Financial Management, Campaign Management: Origin, Meaning and Functionality. He has to plan the funds needed in the future. These sources may be shares, debentures, financial institutions, commercial banks, etc. There are a number of sources available for supplying funds. The selection of an appropriate source is a delicate task. Financial Management Functions of Financial Management The functions of financial management are guided by the ultimate aim of any business i.e. The role of a financial manager is to help decision-makers with their financial decisions so that their businesses continue to turn a profit and minimize costs. Financial manager is concerned with makeup of the right hand side of the balance sheet. A financial manager is not only good for a private organization but also for a public and non-governmental organization as long as they are funds involved. Into the functions of financial management, your financial manager or supervisor acts as one specialized officer of a company. Also known as a finance manager or finance lead, they can make a real difference to a business’ success. There are many theories around financial management: Financial Forecasting and Planning 2. Any organization needs finances to obtain physical resources, carry out the production activities and other business operations, pay compensation to the suppliers, etc. Understanding the various duties required for financial management may seem overwhelming. Functions of Finance Manager The twin aspects, procurement and effective utilization of funds are crucial tasks faced by a finance manager. The pros and cons of various sources should be analysed before making a final decision. Have you ever witnessed the "plate spinner" at the circus? Management, Financial Management, Finance Manager, Functions. Maintain Proper Liquidity. Therefore, an organization should consider financial … It means applying general management principles to financial resources of the enterprise. Employment of financial managers is projected to grow 15 percent from 2019 to 2029, much faster than the average for all occupations. A number of mergers and consolidations take place in the present competitive industrial world. Ascertains capital composition: Once the estimation of capital requirement has been made with the … Functions of Financial Management. Prohibited Content 3. He is to point out situations where funds are being kept idle or proper use of funds is not made Estimating business requirements of funds. Banks, etc in regard to the financial manager to manage resources decisions. 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