Question

Utilizing either the company that you work for or a company that you are familiar with, explain why that business needs a financial manager and the various functions of the financial manager. 

Thinking about what you already know about finance, how does finance impact your personal life? Utilizing either the company that you work for or a company that you are familiar with, explain why that business needs a financial manager and the various functions of the financial manager. 

Thinking about what you already know about finance, how does finance impact your personal life? 

Answer 1

The financial manager has a very important role to play in any organisation. He manages all activities related to finance. This includes activities such as estimation of amount of capital required for the business and the capital structure that would be ideal for this particular organisation.

The finance manager is responsible for selecting the right sources of raising funds since that has a major impact on the cost of capital and finally the profitability of the business. He is instrumental in acquisition of the funds and plays a role in negotiating with the Financial Institutions and underwriters.

An important function of the financial manager is utilisation of the funds in the right manner so as to increase the return on investment of the business. He should be able to make the right capital budgeting decisions so as to expand the operations of the business. The finance manager also helps in deciding the amount of profits that are required to be retained for future growth and this determines the amount of dividend to be distributed to the shareholders.

Cash management is an important task performed by the finance manager. He keeps an eye on the financial ratios which determine whether the business is on the right track.