Financial manager: his role in the company - GovtVacancy.Net

Financial manager: his role in the company - GovtVacancy.Net
Posted on 22-10-2022

Financial manager: his role in the company

In today's market economy, when having to compete with a large number of companies, commercial and industrial companies need to properly manage their financial resources. The control and distribution of the organization's financial flows are carried out by specialists from the economic unit, one of whom is the financial manager. To cope with the functions assigned to you, you need serious theoretical and practical training, as well as management skills.

What is the difference between a Finance manager and an Accountant?

Although a finance manager and an accountant work closely together, these are fundamentally different positions that require different skills. The differences look like this:

° Functions: An accountant maintains tax accounting records in accordance with the requirements and regulations of the legislation and provides reports to regulatory authorities, a financial manager specializes in managing working capital, planning, forecasting, and optimizing business processes.

° Goals: For an accountant, to align the financial activities of the company with tax legislation, for a financial manager, to increase the value of the company by increasing the return on capital.

° Sources of information: For an accountant, this is the tax legislation and primary data, for a financial manager: data from the financial and foreign exchange markets and documents related to management accounting.

Specialist Responsibilities

The job of a financial manager involves the prevention of financial costs and risks of the company. He is dedicated to:

  • Control of incoming and outgoing cash flows
  • Analysis of the efficiency of the distribution of funds
  • Financial market analysis
  • Risk assessment when investing
  • Development of schemes to attract capital
  • Preparation of anti-crisis measures
  • Preparation of recommendations to optimize costs and increase the profitability of the business.

What a finance manager should know

In order to become a sought-after specialist and cope with his duties, a financial manager needs to constantly monitor changes in legislation, improve the level of education and timely master new software. On the job, you will need knowledge of:

  • Management theory, management, business economics, finance and credit
  • Accounting principles and economic statistics
  • Tax legislation and fundamentals of labor legislation.
  • Laws and legal regulations that apply to the conduct of the economic and financial activities of the company
  • Rules for working with values
  • lending principles
  • Investment attraction principles
  • Money Management Basics
  • Methods of formation of working capital of the company.

Pros and cons of the profession

The main advantages of the profession of financial manager

° Great demand in the modern labor market

° Work activities related to the field of financial management generate high and stable income; this will allow you to quickly solve your tasks, for example, buying a car or an apartment.

° Interesting and prestigious work. You can enter the history of the company by significantly increasing its capitalization - employers are willing to pay well for this.

° Education is available to everyone, in many universities in the country training profiles are available that can become the basis for obtaining a valued profession.

Disadvantages of the financial manager position

° It can be difficult to find work in small towns, because the services of a specialist can be paid mainly by large organizations.

° Activities associated with stressful situations.

° The schedule can be irregular.

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