2. What is a financial Manager?
A financial manager is a person who takes care of all the
important financial function of an organization.
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.
3. Important Skills for Financial Managers:-
Analytical skills: Financial managers increasingly assist executives in making
decisions that affect the organization, a task for which they need analytical ability.
Communication: Excellent communication skills are essential because financial
managers must explain and justify complex financial transactions.
Attention to detail: In preparing and analyzing reports such as balance sheets and
income statements, financial managers must pay attention to detail.
Math skills: Financial managers must be skilled in math, including algebra. An
understanding of international finance and complex financial documents also is
important.
Organizational skills: Financial managers deal with a range of information and
documents. They must stay organized to do their jobs effectively.
4. What a Financial Manager do?
Prepare financial statement,
business activity reports,
and forecasts,
Monitor financial details to
ensure that legal requirements
are met,
Supervise employees who do
financial reporting and
budgeting,
Review company financial
reports and seek ways to
reduce costs,
Analyze market trends to find
opportunities for expansion or
for acquiring other companies.
Help management make
financial decisions.
5. The role of the financial manager in business world
In the area of finance and financial management, finance
manager is important authority. Not only to raise the finance of
company, has finance manager done also other lots of works
for company.
“Financial managers ensure the financial health of an
organization through investment activities and long-term
financing strategies.”
6. We can explain his role in following words. The roles of a financial manager
are:
Role of financial manager of raising funds of company
Finance manager checks different sources of company. He did not get fund
from all sources. He has also power to change the capital structure of company
for giving more benefit of company.
Role of Finance Manager for Taking Maximum Benefits from Leverage
Finance manager uses both operating and financial leverage and tries to use it
for taking maximum benefit from leverage.
7. Role of Finance Manager for International Financial Decision
Finance manager finds opportunities in international financial decision. In
these opportunities, he does the contracts of credit default swap, interest rate
swap and currency swap.
Role of Finance Manager in Investment Decisions
Finance manager checks the net present value of each investment project
before actual investment in it. Net present value of project means what net
profit at discount rate, will company gets if company invests him money in
that project.
8. Role of Finance Manager in Risk Management
Happening of risks means facing different losses. Finance manager is very
serious on risk and its management. He plays important role to find new and
new ways to control risk of company.
At last,
Financial activities of a firm is one of the most important and complex
activities of a firm. Therefore in order to take care of these activities a
financial manager performs all the requisite financial activities.