The financial matters of a company or business organization are managed by an executive known as a financial manager. Data analysis are performed by these financial managers and also offer advice to managers who are senior to him or her on ideas about profit maximizing. The financial health of the business enterprise majorly relies on them. The financial data, investment activities which are direct and strategies development and plans for financial goals which are long-term for the organization, are created by financial managers. If you are looking for an authoritative voice in the area of finance, then look no further than russell abrams. The following are the functions of a manager in a financial firm;
Amount of capital required is estimated
The financial manager determining the sum of money necessary for an organization is the primary function they perform. Business enterprises need money for fixed assets to be purchased, working capital requirements to be met and lastly for expanding and modernizing the business. The funds necessary for both short term and long term plans are estimated by the financial manager.
Capital structure being determined
The moment the need of capital funds has been settled or agreed upon, a decision concerning the type and proportion of different sources of the money has to be considered. The proper mix of equity and debt and long term and short term debt ratio should be determined by managers who manages finances in an organization. The minimum cost of capital and shareholders wealth are minimized attained as a result.
Sources of funds are determined
The sources from which the money are to be raised has to be decided by the financial manager before the real procurement of funds is done. The finance can be raised by the management from different sources for example from equity shareholders, debenture holders, public deposits, preference shareholders, SACCOs, banks and so on.
Funds being procured
The procedures to acquire the finances needed by the business organization should be taken by the financial manager. The negotiation with financial institutions and creditors might be required. The procurement of funds does not rely on any factor such as choice of investors, market conditions which are general, government policy and so on.
Funds being utilized
The finances which are secured by the manager who deals with the money in the organization are to be invested wisely in different assets so as the return on investment to be maximized. Safety, liquidity, and profitability are essential principles which guide the management while settling on investment decisions.