FINANCIAL MANAGER: For the increasing the phase of industrialization, rise of large-scale units, innovation in information processing technique and increasing competitions etc. The changed business environment in the recent past has wides the role of a financial manager.
A financial manager is a person who manages the all finance related activities in the company.
In the present business, a financial manager has the following functions:
FINANCIAL FORECASTING AND PLANNING: A financial manager has to estimate the financial needs of a business. The amount will be needed for purchasing fixed assets and check all working capital needs. He has to plan the funds needed in the future.
MAINTAINING LIQUIDITY: Every concern is required to maintain some liquidity to fulfill the day-to-day needs. Cash is the best source for maintaining liquidity. It required to purchase raw material, pay wages, meet other expenses, etc. A finance manager is required to determine the need for liquid assets and then arrange liquid assists.
AVAILABILITY OF FUNDS: There is the number of sources available for the supplying funds. These sources may be shares, debentures, financial institutions, commercial banks etc. The selection of a good resource is a difficult task which is done by the financial manager.
HELPING IN DECISIONS: A number of mergers take place in the present competitive industrial world. A finance manager supposed to assist management in making valuation etc. He should understand the various methods of valuing shares or other assets.
INVESTMENT OF FUNDS: The funds should be used in best possible ways. The technique capital budgeting may be helpful in selecting a project. A financial manager has to keep in mind the principle of safety, liquidity, and soundness while investing the funds.