Any corporation that does business has to deal with money. Not just cash, but all its economic affairs in entirety have to be taken care of. This is where financial managers step in. They are completely in charge of the pecuniary aspects of every transaction that takes place. Financial managers are the vertebrae of the fiscal health of any organization. Holding management positions, they are essential for the smooth functioning of all businesses.
The many types of financial managers are controllers, treasurers, credit managers, cash managers, risk managers, insurance managers, and international banking managers. While there can be separate individuals performing the various tasks involved in managing the finances, there could also be just one or two people with a subordinate team who handle all of these aspects collectively.
Generally employed by the banking and related activities industry like Depository Credit Intermediation, Accounting, Tax Preparation, Bookkeeping, and Payroll Services, Insurance Carriers, Securities and Commodity Contracts Intermediation and Brokerage Firms and such, financial managers’ tasks include, but are not confined to the following activities:
- Creating and balancing books of accounts and taking care to ensure the requirements regarding taxation and monetary receipts and payments are completed scrupulously and on time.
- Developing financial reports after examining data, budgeting and forecasting the immediate and imminent financial position of the company, and providing advice to senior executives on profit-making ideas.
- Involving themselves in direct investment activities.
- Developing routine cash management strategies to monitor cash flow, decrease expenditure and assessing the need for credit or devising plans to invest surplus funds.
- Examining market conditions and seizing opportune moments to curtail or expand business activities.
Having modern computer systems with up-to-date technological applications and data organizers makes the job of financial managers less tedious. Keen analytical skills, clear communication, valuing attention to detail, being systematic and organized and, of course, an outstanding mathematical proficiency are all capabilities important to become a financial manager.