...s to finance its operations. The financial manager must decide how much the firm should borrow as well as the least expenses sources of funds for the firm. How and where to raise the money are important decisions that the manager must correctly make so that no financial consequences occur. Companies borrow money from a vast variety of lenders and a variety of ways so the always be aware of the possible options regarding this.
Gerald, J. M., Samuel, J. Y., W, B. H., & Rabin, J. (2005). How financial managers deal
In addition, the objective of the financial statement user is to find and interpret this data in order to have answers for questions regarding the organisation such as: Would an investment generate returns, or what is the degree of risk inherent in the investment (M. Fraser, Ormiston 1998). Additionally, an organisation’s financial conditions are the main concern to investors and creditors. Investors are simply the capital providers and they rely on an organisation’s financial conditions for both the safety and profitability of their investments. Moreover, investors must to know where their money was spent and where it is now. The financial statement of balance sheet reports that kind of issues by providing detailed information about an organisation’s asset investments. Furthermore, the balance sheet shows a business’s outstanding debt and equity components, and so debt and equity investors are able to better understand their relative positions in a company’s capital mix (Way
Preparation of financial information is a critical role of the management of all public companies. For instance, access to accurate and timely information enhances the ability to manage the business of the company effectively. Moreover, it makes investors to put confidence in financial reports of the company if the company needs to increase its capital in the public securities market.
Primarily, financial managers look at the market price in maximizing the value of the firm. The market value is the present value of the net cash flow divided buy the risk. Investors consider the firm’s future and present earnings, disadvantages or risks and other factors that will influence a firm prior to deciding to create an investment decision and the market price of the stock that will reflect all the information considering these factors (Arain, 2011).
I am currently majoring in Finance Management. Most of the time people think of finance as just managing money. However, finance is needed for so much more! The finance industry deals with starting businesses, developing new products, expanding markets, as well as everyday things like saving for retirement, purchasing a home, and even insurance. The stock market, asset allocation, portfolio analysis, and electronic commerce are all key aspects in finance. In this paper, I will explain how these features play a vital role in the industry, along with the issues that come with these factors.
This essay will explain the main duties of the financial manager in a retail setting, the difference between a financial plan and a budget, how a budget can contribute to a business achieving its aims, the definition of a commercial manager and the five key qualities or skills that a commercial manager needs in order to succeed in this position.
In the past, the company performance was measured by asking ‘how much money the company makes?’ To a certain extent, they are right because gross revenue, profitability, return on capital, etc. are the results that companies must bring to survive. Unfortunately, in today business if the management focuses only on the financial health of the company, numerous unwanted consequences may arise.
When I think of a financial manager, accountant quickly comes to mind. The role of accountant and financial manager are similar in several ways and often times they work closely together on various projects. The role of an Accountant is to ensure that their organization is run efficiently, make sure their records are accurate, and that their taxes are paid properly and on time. Accountants perform a broad range of accounting, auditing, tax, and consulting activities for their clients. They record and analyze the financial information of the companies for which they work. Other responsibilities include budgeting, performance evaluation, cost management, and asset management. “The role of the financial manager has expanded beyond traditional responsibilities related to company's finances. A financial manager, through his/her understanding of the company's financial health, the current market, and the goals of the company, helps set direction and guides decision making.” Financial managers perform several different task related to finance for their organization they normally oversee the preparation of financial reports, direct investment activities, and implement cash management strategies.
...curate financial data for the future. Without financial data for the future, financial managers use data analyses and educated guesses to approximate the value and costs (Boundless, 2014). Financial managers must set the cost of capital, the cost of money over time, for their company to determine to cost of financing projects (Boundless, 2014). While performing all these roles, financial managers must also ensure that the business has enough money available to pay for upcoming financial obligations without hoarding assets that could otherwise be invested (F2.washington.edu, 2014). The roles of financial managers are lengthy and complex and require numerous hours of work on a daily basis. Not only do financial managers have to carry out their daily roles, but they also have to be prepared for random assignments or activities that can pop up in a company at any time.