As every game has a referee or mediator to make crucial decisions and promote fair play similarly, the financial manager plays the massive role as mediator who makes necessary decisions regarding the financial activities of an organization. He is the person who analyses all the data and reports and makes decisions based on the outcome of the reports. A financial manager plays multiple roles for an organization, it may help the firm in various ways.
Main responsibilities of a financial manager
• Raising adequate funds. As we all are aware that finance is the life blood of every business organization, hence the financial managers are responsible for raising adequate funds from various sources and maintaining the liquidity of the business.
• Selecting perfect sources of finance. The financial manager is the person who after studying the reports and documents decides the selection of sources of a fund such as equity and debt. The financial manager decides the proper proportion of equity and debt in a capital structure.
• Proper allocation and utilization of funds. Financial manager always keeps a watch on the movement of funds in a business organization and they make sure that the funds are utilized in an efficient manner
• Ensures perfect profit planning. Profit is important for every business organization to sustain itself in the competitive market. Profit planning involves the proper use of the profit earned or generated by a business. Financial managers make vital decisions regarding the allocation of profits as reinvestment plans, dividend decisions.
