While we are all aware that the finance department of a company carries out some of the most important operations of the organization, the individuals that are in charge of it are accountable for certain responsibilities. The role they play is quite a delicate one as it involves handling the money of the business which clearly does not belong to them. Therefore, these finance managers have a lot on their shoulders in a company. Following information shows what skills and duties they play in an organization.
The basic tasks that should be performed by a finance manager may not look complicated, but it is one of the most responsible jobs that one must handle as it directly deals with the monetary related activities of the company. They are in charge of generating ideas on how to maximize profit by use of relevant data. They are responsible n handling all finances of the company and thereby liable for the financial health of it. Some of the activities they do can be named as preparing financial statements, balance sheets, forecasts, monitoring details with regards to finance, analyzing market trends and finding strategies to reduce the overall cost of the organization.
Making investment decisions
What are capital investment decisions? These decisions are related to the long term investments of the company and are usually related to fixed assets. The usual objective of these companies are to maximize value of the firm by investing in projects that have a positive net present value (NPV). If such an opportunity is not available, shareholder value should be maximized. Also, another part of the decisions they make could be the allocation of the limited resources to project opportunities which may seem feasible.
Carrying various skills
Being a finance manager does not mean that being able to count money is going to be sufficient to qualify for this job but it also requires several numbers of skills that you might have heard of before. They can be named as analytical skills, communication skills, math skills, attention to detail and organizational skills. Once these skills are combined, a true finance manager is born.
Playing multiple roles
Just as a finance manager is supposed to carry several skills that are highly necessary, they also play a multiple number of roles in the organization. Controllers, credit managers, cash managers, risk managers and insurance managers, each focusing on a different area of finance.
Therefore, the tasks of finance are not too simple as they are bound by many responsibilities in handling organizational finances.