A closer look at the role of financial managers
Any establishment that does business has to deal with money. Not just cash, but all its economic affairs in totality have to be taken care of. This is where financial managers step in. They are completely in charge of the monetary aspects of every transaction that takes place. Financial managers are the backbone of the fiscal health of any organization. Occupying management positions, they are vital for the smooth functioning of all businesses.
The many types of financial managers are controllers, treasurers, credit managers, cash managers, risk managers, insurance managers and International banking managers. While there can be individual people doing the various tasks involved in handling the finances, there could also be just one or two people with a subordinate team who manage all of these aspects collectively.
Employed by the Banking & related activities industry like Depository Credit Intermediation, Accounting, Tax Preparation, Bookkeeping, and Payroll Services, Insurance Carriers, Securities and Commodity Contracts Intermediation and Brokerage Firms and such, financial managers’ tasks include, but are not restricted to the following activities:
Creating and balancing books of accounts and taking care to ensure the requirements regarding taxation and monetary receipts and payments are completed scrupulously and on time;
Preparing financial reports after analyzing data, budgeting and forecasting the immediate and impending financial position of the company, and providing advice to senior executives on profit-making ideas;
Financial managers involve themselves in direct investment activities such as:
- Developing regular cash management policies to monitor cash flow, reduce expenditure and assessing the need for credit or devising plans to invest surplus funds;
- Examining market conditions and seizing opportune moments to curtail or expand business activities.
- Having modern computer systems with current technological applications and data organizers makes the job of financial managers less tedious. But keen analytical skills, clear communication, valuing attention to detail, being systematic and organized and, of course, an outstanding mathematical proficiency are all capabilities essential for a financial manager.
