The role of financial managers has evolved over time. Originally, they primarily raised funds and managed cash positions. In the 1950s, acceptance of present value concepts encouraged financial managers to take on capital investment projects. Today, financial managers must adapt to changing external factors like competition, technology, and regulations and play a more strategic role in ensuring the firm's survival. The successful financial manager of tomorrow will need new methods to manage uncertainty and multiple assumptions.

2. Financial manager
dynamic role in a modern company’s development.
This has not always been the case.
Until around the first half of the 1900s financial managers primarily
raised funds and managed their firms’ cash positions – and that was
pretty much it.
In the 1950s, the increasing acceptance of present value concepts
encouraged financial managers to expand their responsibilities and
to become concerned with the selection of capital investment
projects.

3. Today, external factors have an increasing impact on the financial
manager.
• Heightened corporate competition,
• Technological change, Volatility in inflation and interest rates,
• Worldwide economic uncertainty,
• Fluctuating exchange rates,
• Tax law changes,
• Environmental issues, and ethical concerns over certain financial
dealings must be dealt with almost daily.

4. As a result,
Finance is required to play an ever more vital strategic role within
the corporation.
The “old ways of doing things” simply are not good enough in a
world where old ways quickly become obsolete.
Thus today’s financial manager must have the flexibility to adapt
to the changing external environment if his or her firm is to
survive.

5. The successful financial manager of tomorrow will
need to supplement the traditional metrics of
performance with new methods that encourage a
greater role for uncertainty and multiple assumptions.

6. • Your ability to adapt to change,
• Raise funds,
• Invest in assets,
• Manage wisely will affect the success of your firm
and, ultimately, the overall economy as well.

7. • To the extent that funds are misallocated, the
growth of the economy will be slowed.
• When economic wants are unfulfilled, this
misallocation of funds may work to the detriment of
society. In an economy, efficient allocation of
resources is vital to optimal growth in that
economy.

8. Financial management Concerns the
• Acquisition,
• Financing,
• Management of assets
with some overall goal in mind.

9. ALLOCATION OF RESOURCES

10. Financial analysis is the examination of a business from a
variety of perspectives in order to fully understand the
greater financial situation and determine how best to
strengthen the business. A financial analysis looks at many
aspects of a business from its profitability and stability to its
solvency and liquidity.

11. Finance as we know it today grew out of economics and accounting.
Economists developed the notion that an asset’s value is based on
the future cash flows the asset will provide,
and accountants provided information regarding the likely size of
those cash flows.
Finance then grew out of and lies between economics and
accounting, so people who work in finance need knowledge of those
two fields

12. Accounting FINANCE Economics
Efficient use of
limited resources
• Land
• Labour
• Capital
• organization
Accounting system Arrangement
Statements
Utilization

21. Corporation

22. Corporation Investors

23. Government
Corporation Investors

24. cash
Government
Corporation Investors

25. cash
Government
securities
Corporation Investors

26. Government
cash
securities
Corporation Investors
Secondary
markets

27. Government
cash
securities
Corporation Investors
Secondary
markets

28. Government
cash
securities
Corporation Investors
Secondary
markets

29. cash Investors
Secondary
markets
Government
securities
Cash flow
Corporation

30. cash Investors
Secondary
markets
Government
securities
Cash flow
tax
Corporation

31. cash Investors
Secondary
markets
Government
securities
Cash flow
reinvest
tax
Corporation

32. cash Investors
Secondary
markets
Government
securities
Cash flow
reinvest
tax
Corporation
dividends,
etc.