The functions of a financial manager include making investment, financing, and dividend decisions. A financial manager is responsible for the financial health of an organization by producing financial reports, directing investment activities, and developing long-term financial strategies and goals. Some of the primary roles of a financial manager are performing financial analysis and planning, deciding how to invest funds, determining the best sources of financing, and deciding how to distribute profits between shareholders and retained earnings. In addition to these core duties, a financial manager also forecasts future profits, allocates resources and funds, and represents the interests of shareholders.

1. Functions of
Financial Manager
•Presented By :
Shristi Giri

2. Agenda
• Who is Financial Manager
• Primary Function
1. Investment Decision
2. Financial Decision
3. Dividend Decision
• Other Functions

3. Who is Financial Manager?
• Financial managers are responsible for
the financial health of an organization.
They produce financial reports, direct
investment activities, and develop
strategies and plans for the long-
term financial goals of their organization.

4. Primary Functions
• Performing Financial Analysis and
Planning
• Investment Decision
• Financing Decision
• Dividend Decision

5. Financial Analysis & Planning
• It refers to an assessment of :
• Profitability
• Solvency
• Liquidity
• Stability

6. Method of Financial Analysis
• Past Performance
• Future Performance
• Comparative Performance

7. Investment Decision
 It is the process of Planning &
Management of Long & Short term
Investment of an organization.
 It involves Risk

8. Financial Decision
The important decision which finance
manager has to take is deciding source of
finance. A company can raise finance from
various sources such as by issue of shares,
debentures or by taking loan and advances.
Deciding how much to raise from which
source is concern of financing decisions

9. Sources of Finance

10. Dividend Decision
• This decision is concerned with
distribution of surplus funds. The profit
of the firm is distributed among various
parties such as debenture holders,
shareholders etc.
• The surplus profit is either distributed to
equity shareholders in the form of
dividend or kept aside in the form of
retained earnings.

11. Other Functions…
• Forecasting Future profit
• Allocation of Funds & Resources
• Take care of the share holders

12. • THE HISTORY OF FAILURES OF
ORGANISATIONS IS INTERESTING. MANY
FIRMS HAVE FAILED, NOT BECAUSE OF
INEFFICIENCY OF PRODUCTION, INABILITY IN
MARKETING OR NONAVAILABILITY OF FUNDS
BUT DUE TO THE ABSENCE OF COMPETENT
FINANCE MANAGER