Role of Financial Manager in Company

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A financial manager in an organization is the individual who, following the accepted principles and processes of accounting, is charged with the duty of managing the organizations financial programs, tasks, and systems in the general areas of accounting, staff payroll, the accounts payables of the organization. He also has the responsibility of giving proficient advice to the organization in the relevant financial areas. (City of American Canyon, 2005).

In an organization like Abel Athletics, the finance department plays a very pivotal role and the achievement of the goals of the finance department will contribute towards ensuring the successful accomplishment of the duties of the finance manager.

The finance department has a number of roles within Abel Athletics and some of these roles include:

  1. The staff of the department has the duty of administering the finances allocated to the department by following all the necessary finance and accounting procedures.
  2. The department should satisfy the public obligation of producing and printing the public companys annual financial statements of accounts.
  3. The department together with the financial manager is involved in coordinating budgets with reference to the companys and departments costs of administration and financing the projects of the company.
  4. It is also responsible for implementing new financial management technology and software and also accounting and financial procedures for the management of the organizations management. (Department of Enterprise, Trade and Employment, 2008).

The finance department offers support to the finance manager to satisfy the objectives of his work in terms of the department is staffed with researchers who gather current information on the market which are availed to the manager for decision making. The staff at the finance department are experts with whom the manager can consult on various issues pertaining to finance to have informed judgments.

Some of the ethical responsibilities of the finance department are for the members to be the hosts and have integrity, and evade conflict of interest in their work and personal associations. They should always ensure the information they present is appropriate, correct, well-timed and objective, understandable for full precise disclosure. They should act in good faith, apply their proficiency, take due care and avoid misrepresentation of material facts (Monsanto, 2004).

For the manager to utilize the talents of the finance department, he should be ready and willing to listen to everyone in the department without favor. The staff should all be dealt with equal and sow seeds of mutual trust, honesty, and respect among the entire department staff. The manager should always seek the counsel and views of the staff and ensure an inclusive leadership for them to feel free to share their expert opinions with the rest of the group members.

For the benefit of the staff and the organization as a whole, the finance manager should encourage his subordinates at the department of finance to take up extra classes to further expand their understanding of financial matters.

Some of the vital components of a financial system are: accounts payable to other firms accounts receivable from other firms, entry for new orders, payroll, accounting control for internal purposes, stocks control, reporting on a monthly basis, etc.

In assessing the financial stability of an organization, there are some ratios that can be employed, and these include the liquidity ratios, profitability ratios, debt ratio (Melissa Bushman, 2007).

References

Business Town.com. Accounting  Basic Accounting. Components of the Accounting System. 2003. Web.

The city of American Canyon. Finance Manager. 2005.

Department of Enterprise, Trade, and Employment. Role of the Finance Unit. 2008. Web.

Melissa Bushman. Associated Content. Using Ratio Analysis to Assess Financial Stability, 2007.

Monsanto. Code of Ethics for Chief Executives and Senior Financial Officers. 2004.

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