The important function of the financial manager in a modern business consists of the following:
1. Provision of capital: To establish and execute programmes for the provision of capital required by the business.
2. Investor relations: to establish and maintain an adequate market for the company securities and to maintain adequate liaison with investment bankers, financial analysis and share holders.
3. Short term financing: To maintain adequate sources for company’s current borrowing from commercial banks and other lending institutions.
4. Banking and Custody: To maintain banking arrangement, to receive, has custody of accounts.
5. Credit and collections: to direct the granting of credit and the collection of accounts due to the company including the supervision of required arrangements for financing sales such as time payment and leasing plans.
6. Investments: to achieve the company’s funds as required and to establish and co-ordinate policies for investment in pension and other similar trusts.
7. Insurance:to provide insurance coverage as required.
8. Planning for control: To establish, co-ordinate and administer an adequate plan for the control of operations.
9. Reporting and interpreting: To compare information with operating plans and standards and to report and interpret the results of operations to all levels of management and to the owners of the business.
10. Evaluating and consulting: To consult with all the segments of management responsible for policy or action concerning any phase of the operation of the business as it relates to the attainment of objectives and the effectiveness of policies, organization structure and procedures.
11. Tax administration: to establish and administer tax policies and procedures.
12. Government reporting: To supervise or co-ordinate the preparation of reports to government agencies.
13. Protection of assets: To ensure protection of assets for the business through internal control, internal auditing and proper insurance coverage.
No comments:
Post a Comment