A financial manager is the person who plans, organizes, executes and controls the use of the financial resources of a company. In order to maximize its use.
In other words, it is responsible for the administration of financial resources, which are used for a company to finance its activities and investments. The financial manager plays a role that is critical to the operation and success of a business.
In addition, he is in charge of budgeting and making projections on the use of cash. He is responsible for credit management, analyzes investments and looks for the means to achieve the capitalization of the company.
It should be noted that the financial administrator can be the person who in a company occupies the position of manager or financial director. Regardless of the name it receives, every company needs a person to handle the financial resources of the company.
Functions of the financial manager
The main functions of a financial manager are:
1. Management of financial resources
First, the financial manager must know how the company is doing. Then you must plan and control the use of the financial resources you have.
Of course, to efficiently perform this task, the financial manager must know how the external factors that can affect the financial performance of the organization are behaving. For this reason, you must be very careful in your decisions, since you must know that the planned budgets can be affected by the changes that occur in the markets.
Fundamentally, changes in the market could prevent the objectives set in budget planning from being met. Therefore, what is planned cannot be guaranteed that it can be achieved in the future.
2. Ensure the growth of the company
Second, the financial manager must plan and identify the financing sources that best suit the business. The idea is that the resources obtained are used in the optimal way.
The financing obtained allows the company to face its financial responsibilities. Both present and future responsibilities, this reduces risks and ensures the growth of the company.
3. Make financial decisions
Third, you must make financial decisions appropriately, this helps the company project into the future. Decisions that are projected into the future must be based on reliable information and data.
What should be sought is to maximize the use of financial resources. This is achieved with the application of financial tools and using the strategies that allow to recover the money invested at the lowest cost. The capital is also expected to recover in the shortest possible time. In this way, the proposed objectives can be met and the value of the company will be maximized.Financial manager
Qualities of the financial manager
A financial manager must meet the following qualities:
1. Be a leader and a good communicator
Naturally, you have to be a good leader. Leadership must earn it through trust and respect. You must have initiative to lead the team and manage a fluid and open communication system.
Above all, so that relevant information can be shared and that a continuous and immediate feedback system is given. What can promote productivity by having good working relationships.
2. Global vision of the business and company
Additionally, you must have a global vision of the business and the company, which allows you to anticipate changes and challenges that may arise. If you have a global vision, you will be able to make the best decisions and strategies in any area where financial resources are handled. This can only be accomplished if you know the whole business.
3. Risk management and strategy
Of course, you must know how to evaluate the risk situations that arise in the present and in the future, since this can affect the operation of the company. You have to think strategically to act immediately and appropriately.
4. Ability to negotiate
Indeed, you have to be a skilled negotiator to obtain better relationships and alliances with customers, partners and suppliers that help the development and growth of the business.
5. Possess ethical principles
Finally, the financial manager must be ethical and upright since he manages the financial resources of the organization. This implies a great responsibility and commitment to the company.Financial manager
To conclude, we can say that the financial administrator has as main responsibility the management of the financial resources of the company. But you don't have to operate in isolation, you have to network and work collaboratively with production, marketing and personnel departments. Seeking to achieve the main objective that is to maximize the use of financial resources.