Financial Manager: Functions and Responsibilities
The priority objectives of any company should be listed item, the essence of which is the effective management of resources. Much depends on what strategy was chosen by the company. This can affect the formation of cash flows, as well as the definition of relationships that have developed between different business entities. And in this review we will try to consider what is such a specialty as a financial manager.
Who can influence the effective operation of the company?
Accounting, control, resource allocation and other similar functions are assigned to the economic department. Its employees are responsible for the competent implementation of the relevant policies of the enterprise. They are obliged to form such conditions that will promote the efficient operation of the company. The financial manager must solve a variety of tasks, which can be very much.Among them it is worthwhile to single out only those that the employee will have to face most often.
The main tasks that the specialist must solve
So, what tasks should be solved?
- It is necessary to find options for the most efficient use of available resources.
- It is necessary to optimize the cash flow and minimize possible risks.
- It is required to correctly assess the potential capabilities of the enterprise.
- It is necessary to look for solutions with the help of which it will be possible to achieve economic stability.
- Need to plan and control costs.
- The specialist should work with clients.
It is also necessary to solve organizational problems. The functions of a financial manager should include participation in the budget process and ensuring the functioning of the treasury. The activity of a specialist implies the exercise of control over economic activity, the analysis of cash flows, the study of the possibilities of using a variety of tools within the framework of a company's policy.
Simple duties that the employee must perform
What else can be said about such a specialty as a financial manager? The duties of this employee are quite extensive. You can select only the most important of them.
- He must analyze the balance sheet.
- He is obliged to understand the reporting (accounting, operational and static).
- He must verify financial information.
- What else should a financial manager do? Responsibilities of this employee include the analysis of the results of industrial, commercial and financial activities.
- He must analyze and evaluate the economic efficiency inherent in measures regarding investment.
- The employee is obliged to exercise control over cash flow.
- He must predict the outcome of the investment of money, evaluating and making final decisions.
- His responsibilities include developing programs for the use of financial resources.
- He must draw up financial plans, reports on the use of resources and the achievement of indicators.
- He is obliged to prepare documentation with regards to financial issues for submission to banking, tax organizations.
- Its functions include monitoring the achievement of indicators inherent in the financial plan and programs regarding the effective use of resources.
More complex duties
The activity of a financial manager implies the fulfillment of more complex duties. They are as follows:
- The specialist should be engaged in the formation of monetary policy.
- He is obliged to provide foreign exchange activities.
- His responsibilities include developing a strategy, as well as participating in the formation of business plans.
- He should be engaged in insurance of financial risks.
- He is obliged to conduct mortgage, trust and leasing operations.
- The specialist should analyze the financial and economic activities of the company, while considering the market conditions.
Subtleties that must be considered
What other nuances should such work take into account? The financial manager at the present stage should be able to adapt to the conditions of the external environment, which are able to change quickly. At the same time he needs to quickly develop the strategy of the enterprise.
What should a financial manager consider? Strategic management is closely related to the process of developing a long-term course of development of the company, as well as its implementation, through the use of these business plans.
Depending on what size the company is characterized, as well as what goals it has, the above functions and tasks of the financial manager can be modified, detailed or expanded. For example, investment policy may affect not only the implementation of cash investments. It is also capable of implying investment in the authorized capital of another company or the issue of its own securities. Funds from their placement should be used in an optimal way.
Using software to solve problems
In their work, the financial manager has to use a variety of tools. The process of accounting and control is rather complicated and responsible. A specialist can not be mistaken, as he is engaged in the management of assets of the enterprise. In order to improve the quality, as well as to systematize the processes as much as possible, the company implements all sorts of programs with broad functionality. This approach allows to optimize labor and time costs, increasing efficiency.Accordingly, the activities of such a specialist as a financial manager are simplified.
The main points concerning the job description
What should the job description of the employee include? It is necessary to reflect absolutely all the responsibilities that will be assigned to a specialist. Everything else, it must take into account the powers that will be vested in the financial manager. This will help him understand his rights. Accordingly, in the future he will be able to more effectively carry out his activities in full compliance with the provisions of the instructions.
The development of job descriptions takes place taking into account the peculiarities of the activities of specialists in certain companies. However, there are similar parameters.
- Basic provisions.
- Requirements to the level of qualification.
- Criteria for assessing the quality of the tasks performed.
- Employee rights.
- Powers and responsibilities entrusted to the manager.
- The responsibility borne by the specialist.
Items should be described clearly and fully.
Being engaged in the preparation of the job description, it is necessary to clearly and fully prescribe all the provisions.This approach will not allow employees to irresponsibly approach the solution of tasks. On top of that, based on the provisions of the instructions, the financial manager will be able to organize the labor process more systematically, using his rights and powers more productively.
If the job description is compiled with high quality, then the recruiting specialist will be able to fill the vacancies in the most efficient way. He will evaluate the resume, guided by the provisions of the job description. With this approach, you can find not only a professional financial manager, but also other professionals, regardless of their specialization.
In this review, the main tasks, functions and responsibilities that are assigned to a financial manager were reviewed. However, it should be understood that this is only general information, and much will depend on a particular company, on its size and specialization.