The Chief Financial Officer (CFO) leads a company’s financial management team. The role and responsibilities of the Chief Financial Officer will vary based on the size and type of firm. In a typical corporation, the Chief Financial Officer CFO and her team will facilitate the flow of capital from external investors to the operations and oversee the management of cash within the organization and with invested parties. The Chief Financial Officer CFO reports to the Chief Executive Officer (CEO) or President of the firm.
Regardless of their objective, all organizations may profit from the work of a financial manager. Financial managers often control an organization’s financial health and assist in ensuring its long-term existence. They are in charge of critical duties such as cash flow monitoring, calculating profitability, controlling spending, and generating reliable financial information.
The Qualifications of a Financial Manager
A bachelor’s degree in accounting, finance, or business administration is often required to become a financial manager. A master’s degree in a relevant profession can give the knowledge and abilities needed to rise to positions of leadership.
Individuals can acquire a variety of professional certifications in addition to college degrees to improve their knowledge and capabilities. Certifications include, for example:
The Certified Management Accountant (CMA) credential is provided by the Institute of Management Accountants.
The International Financial Management Association provides a number of credentials in credit analysis and management, online finance, investments, and management accounting.
Financial Risk Manager (FRM) accreditation is available through the Global Association of Risk Professionals.
The Primary Role of the Financial Manager
In summary, the primary role of the finance department in the corporation is to maximize the value per share of the firm’s stock by:
The Finance Department maximizes value per share by:
- Forecasting and planning accurately
- Optimizing investment and financing decisions
- Providing coordination and control
- Effectively executing transactions in the financial markets
- Managing risk
This is not an exhaustive list, as managers in the finance function are often given special projects and other analytical work to perform.
Video Commentary: What Are The Duties And Responsibilities Of Financial Managers?
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