Discuss five areas of responsibility under the control of the financial manager
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A financial manager is a person who is responsible for taking care of all the essential financial functions of an organization. Nowadays, Finance Managers spend less time producing financial reports and prefer to invest more time in conducting data analysis, planning and strategizing, or advising senior managers or top executives. Show
Responsibilities of Finance Manager:
These types of financial decisions can, directly and indirectly, influence other activities.
Role of a Financial ManagerThe role of a financial manager is rapidly increasing due to advance technology which has significantly reduced the amount of time that was occupied to produce financial reports.
Types of Financial Managers:
While a sole proprietor might be able to handle the financial end of his shop all alone, but as a business gets bigger, the owner will likely need the help of a financial manager. 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. Some financial managers specialize in an area such as insurance, cash management or accounting control. Learn about the activities of a financial manager and the types to better understand this career. Role of a Financial ManagerFinancial managers control an organization's assets, including its investments and cash, to maximize their efficient use. They analyze sales, expenses and economic trends to prepare financial reports and forecasts. They can then use this information to advise top executives on how to generate wealth and maintain market positioning. The Bureau of Labor Statistics notes that their tasks are often specific to industries or organizations. For example, those in hospitals must know about how costs are affected by insurance claims, and how government health-care regulations can change medical procedures and expenses. Most receive their technical skills by working several years in financial occupations such as accountant, auditor or financial analyst before they assume the role of a financial manager. Types of Financial ManagersAccording to the BLS, financial manager duties vary by their job titles. Controllers are in charge of an organization’s accounting operations, including the production of financial reports. Treasurers handle the budgets and find ways to raise capital. Cash managers ensure that their organizations have enough money to meet daily and future obligations, while credit managers determine what criteria to judge credit applicants and procedures for collecting overdue accounts. Insurance managers advise management of any potential hazards to an organization, such as worker safety, and prepare for those potential problems by buying enough insurance. Essential Financial Manager SkillsA financial manager can only perform their tasks with the help of professionals such as accountants and financial analysts. They must hire and train his subordinates. They can reward top performers with salary increases and promotions, or fire those who do not live up to expectations. Villanova University notes that financial managers' responsibilities require soft skills such as good leadership skills in order to to motivate workers, so they can spend more time on strategic planning and analysis, rather on the technical nuts and bolts of creating charts and balancing accounts. The ability to communicate well in writing and verbally is essential so they can transmit information about the company’s financial health to its top managers and employees. Career and Salary InfoAccording to the BLS, financial managers need a minimum of a bachelor’s degree in finance, accounting, economics or business administration, and five years of increasingly responsible experience in a technical profession such as loan officer or securities sales agent. Many have a master’s degree and certification as a Chartered Financial Analyst. As of May 2019, the BLS salary data noted that they earned a mean $147,530 per year, or $70.93 per hour, although compensation went over $181,980 yearly, or $87.49 hourly, for the top earners. Most worked for depository credit intermediation, which included banks, to average an annual $120,620, or $57.99 per hour. The highest pay was in securities and commodity exchanges at a mean $201,790 per year, or $97.01 hourly. What are the 5 responsibilities of finance department?Roles and Responsibilities of a Finance Department. a. Bookkeeping. ... . b. Management of company's cash flow. ... . c. Budgets and forecasting. ... . d. Advising and sourcing longer-term financing. ... . e. Management of Taxes. ... . f. Management of Company's Investments. ... . g. Financial Reporting and analysis. ... . What are the primary responsibilities of the financial manager?Financial managers perform data analysis and advise senior managers on profit-maximizing ideas. Financial managers are responsible for the financial health of an organization. They create financial reports, direct investment activities, and develop plans for the long-term financial goals of their organization.
What are the main responsibilities and the day to day responsibilities of the financial manager what are the soft skills required for this position?They research and gather data to help the company make financial decisions, prepare budgets, and assist with audits. Communication and analytical skills, as well as a strong understanding of accounting standards and tax codes are necessary skill sets for finance managers.
What are the 5 types of financial management?Types of Financial Management. 2.1 Treasury and Capital Budget Management.. 2.2 Capital Structure Management.. 2.3 Working Capital Management.. 2.4 Financial Planning, Analysis and Control Management.. 2.5 Insurance and Risk Management.. |
