Role of a finance manager

This presentation provides the complete Role and responsibilities of a person acting as a Finance Manager in any XYZ organization.
One can very well use this as a reference to see the basic Job Description for the post of a Finance Manager and can gain meaningful insights from it.

1. Corporate Finance Role, Skills and Responsibility of Finance Manager of a Manufacturing Firm Presented By :- Angshuman Mitra

2. Contents Introduction of Manufacturing Company Overview of Financial Management Who is a Financial Manager? Types of Financial Managers Roles and Responsibilities of Financial Managers Skills required for Financial Manager Some necessary examples Bibliography

3. Manufacturing Industry Manufacturing simply refers to the process wherein raw materials get converted into finished products either for further sale or for ultimate consumption. Manufacturing Industry refers to those industries which are involved particularly in the manufacturing process. Examples of Manufacturing Companies: Apple , General Motors.

4. Financial Management Financial Management can be defined as the science and art of managing money. Financial Management (or business finance) is concerned with managing a corporation`s money.

5. Who is a Financial manager? A financial manager is a person who manages the finances of a business entity both efficiently and effectively.

6. Types of Financial Manager The top Financial Manager within a firm is usually the Chief Financial Officer (CFO). Treasurer – Oversees cash management, credit management, capital expenditure and financial planning. Controller – Oversees taxes, cost accounting, financial accounting and data processing

7. Financial Management Activities Capital budgeting What long-term investments or projects should the business take on? Capital structure How should we pay for our assets? Should we use debt or equity? Working capital management How do we manage the day-to-day finances of the firm?

8. Role of a Financial Manager Provide information about the interest rates at which the company is willing to take loans. The future cash flow needs. Recommendations about taking short-term loans or self-financing. Recommendations of long-term debt increase or issue of share; or a combination of both. Availability of risk management techniques. The economic units production and its impact on the existing and planned project.

9. Functions of a Finance Manager Estimation of Capital requirement Determination of capital composition Own capital Owed capital Choices of sources of funds- In order to procure additional funds a company has many choices like: Issue of shares and debentures. Loans to be taken from banks and other financial institutions. Public deposits to be drawn in the form of bonds.

10. …contd Investment of the funds Disposal of Surplus : Dividend Declaration Retained earnings Management of cash Financial control

11. Finance manager role in Current Time Understanding the implication of corporate social responsibility with respect to profitability. Decision on the optimum size of the firm Decision on stock option , perquisites and bonuses. Understanding and applying the modern financial instruments such as factoring, derivative, credit derivative, securitization and venture capital. Transfer pricing Understanding the Time Value of Money

12. Skills Required for Financial Manager Analytical skills Financial managers increasingly assist executives in making decisions that affect the organization, a task for which they need analytical ability. Communication Skills Excellent communication skills are essential because financial managers must explain and justify complex financial transactions.

13. …contd Attention to detail In preparing and analyzing reports such as balance sheets and income statements, financial managers must pay attention to detail. Mathematical skills Financial managers must be skilled in math, including algebra. An understanding of international finance and complex financial documents also is important. Organizational skills Financial managers deal with a range of information and documents. They must stay organized to do their jobs effectively.

14. Example Finance manager in HP Job Descriptions Responsibilities : Manages a large team of individuals by setting and monitoring performance goals and objectives ,ensuring timely and effective delivery of audit reviews and programmes. Drives risk assessments, defines project scope, determines resource needs. Interprets significance of audit findings. Serves as an expert on audit standards and GAAP related issues.

15. Skills Content master in the field of internal audit with a complete systematic knowledge of audit standards and accounting principles. Excellent presentation, communication, and influencing skills. Superior Quantitative and qualitative analytical skills. Excellent financial and mathematical knowledge. Meets the licensing or certificationrequirements of the country or region (e.g., CPA or its equivalent)