The Role of Finance Manager

Role of finance manager

The financial manager is an important position within the structure of any firm. Almost every firm of any size has a person whose role is “to create value from the firm’s capital budgeting, financing, and net working-capital activities. Financial managers oversee the preparation of financial reports, execute cash management strategies, and direct a corporation’s investment activities. Increasingly, this job has also included detailing and implementing a corporation’s long-range goals as well as those in the short term.
Role of the finance manager in maximizing shareholder value:
In many ways the finance manager must become the strategic partner of the chief executive officer. The finance manager is responsible, most certainly, of the purse-strings, but also for the future of the corporation. The financial manager must also demonstrate leadership in cost-effective uses of the corporation’s financial resources by utilizing effective financial management practices; in this way, the finance manager, more than others, is responsible for maximizing the shareholder value.

The role of financial manager is to increase the value of the capital provided by investor in the form of increase in the profit and the value of the company. Ensure enough cash is available to meet the company operation need and make decision on which project can be taken as to give better return to the company.