A financial manager’s main responsibility is to maximize a firm’s value by balancing short-term and long-term goals. The activities of this position include planning, forecasting, and controlling expenditures. These activities may include the production of P&L statements, the analysis of product lines and services, and maintaining a budget. The financial manager may also be responsible for FP&A activities, which include the development of scenario plans and forecasts of future financial performance.
In addition to analyzing daily financial activities, the Financial Manager also provides advice to upper management to enable them to make sound business decisions. Financial managers interpret financial data to determine how much money is available, and recommend action steps for the company. These managers also develop trends and identify cost reduction opportunities within an organization. They may also work on strategic planning projects to maximize a firm’s returns and minimize its risk. The career path of a financial manager is not limited to the accounting field, however, as many other fields require a wide variety of skills.
The financial manager plays a vital role in business development. They keep track of operational costs, analyze financial strengths and weaknesses of a company’s investments, and provide insight to the top executives to help them make strategic decisions. The financial manager must be able to deal with investors, boards of directors, and other stakeholders in a professional manner. In addition, they need to know how to manage cash flow in and out of a business. The financial manager must ensure that each department contributes to the vision of the organization, operates within a budget, and aligns with the company’s strategy. This type of financial management provides insight to all employees of a company, and enables them to understand where their company is progressing.