The Role of the Financial Manager and Maximizing Share Holder ValuesThe financial manager is one of the main sources of an organizations decision- making team
The Role of the Financial Manager
Running head: Role of the Financial Manager
The Role of the Financial Manager in Maximizing Shareholder Value
David Beckham
University of Phoenix
FIN 554
Sheri Wang
May 21, 2006
The Role of the Financial Manager and Maximizing Share Holder Values
The financial manager is one of the main sources of an organizations decision- making team. Financial managers have key roles in overall business management. Most financial managers have had some accountancy training, usually in industry, commerce or the public sector. Finance and accounting manager roles vary slightly, depending on the type and size of the organization. In large firms, the financial manager role is more concerned with strategic analysis; while in smaller firms, the financial manager can be responsible for collecting and preparing accounts as well as interpreting the reports and analysis that the accounting managers create.
Some organizations operate cross functional teams where the financial manager is responsible for a particular division or function; while other financial managers in organizations manager over various departments or functions. Financial managers provide leadership in effectively using firms’ financial resources through proper allocation and utilization of company funds by putting in place effective financial management practices. Financial managers manage and determine the debt equity ratio of the company as well as determining the source of capital for investments. They are also responsible for setting up an appropriate capital and financial structure for a given organization. A financial manager provides timely and reliable financial information by analyzing all financial information and relating it to the company’s goals and objectives. A financial manager ensures that a company’s resources are protected from fraudulent use, abuse and waste. They do this through proper accounting and internal control systems within the organization. Financial managers are also responsible for educating shareholders of the company’s financial position as well as answering shareholder questions concerning the financial operation of the company. Financial managers can be found in private and publicly owned companies. Their jobs and responsibilities vary depending on the type of organization. They are also known as financial analysts and business analysts.
