Responsibilities of Financial Executives in an Organization
The financial executives of an organization have to perform variety of tasks to discharge their huge responsibility of handling the finance functions of the organization. The responsibility of the finance manager has been going beyond keeping records, reports, the firm’s cash position, paying bills, obtaining funds and now they are into the decision making processes to decide the investment of funds in assets, determining the best mix of financing and dividends in relation to over all valuation of the firm. They are also linked to the goal of ensuring liquidity, profitability or both and also related to the management of assets and funds of any business enterprises.
The financial manager is engaged with the following;
- Forecasting of cash flow: it is very essential for the day to day operations of the business so that it can discharge its obligations as and when they arise.
- Rising of Funds: the financial manager has to plan for mobilizing funds from different sources so that the requisite amount of funds are made available to the business enterprise to meet its requirements for short term, medium and long term.
- Facilitate cost control: the financial manager is generally the first person to recognize when costs for the supplies or production processes are exceeding the standard costs/budgeted figures
- Forecasting the profits: the financial manager is usually responsible for collecting the relevant data to make forecasts of profit levels in future. The financial executives must support the Finance Manager in budgeting.
Working as the Fund Manager:
Funds can be termed as the liquid assets of the firm. In the management of funds, the financial manager acts as a specialized staff officer to the chief executive of the company. The manager is responsible for having sufficient funds for the firm to conduct its business and to pay its bills. Money must be located to finance receivables and inventories, to make arrangements for the purchase of assets, and to identify the sources of long term financing. Cash must be available to pay dividends declared by the board of directors. The management of funds has therefore, both liquidity and profitability aspects.
Finance executives manage income, expenses, investments and other money transactions so that their organizations remain profitable. They produce and analyze financial reports such as cash-flow statements and profit projections, determine ways to improve financial performance, and ensure that their organizations meet all applicable standards, regulations and laws. Emirates Chartered Accountants Group Dubai provides all the finance activities for a business enterprise. Contact email@example.com