What are the roles and responsibilities of a Finance Manager in a modern firm?

A Finance Manager is a professional who manages the financial functions of an organization. As such, the financial manager is a top-ranking official in the business and he or she plays a vital role in making the business become successful. In the past, financial managers were not considered for the top-ranking or decision-making roles, but with time, the perceptions have changed.

A modern financial manager is a top boss who knows much about the company's financial procedures. He or she is considered a vital employee of the organization and he plays a key role in managing the finances of the company. Therefore, financial managers are often a part of the board in modern enterprises.

Note − In modern organizations, financial managers are part of decisiontakers.

Roles and Responsibilities of a Finance Manager

In modern organizations, the finance manager is a far-sighted and analytical person who has knowledge of the market condition in regard to the financial aspects of the company. He or she is directly responsible for carrying the businesses into newer heights by introspection, interpretation, and correct decision making in day to day activities of the organization.

A finance manager must know and realize that his or her actions have farreaching effects and hence work responsibly. He or she must find the correct business practices depending on size, profitability, and risk for the growth of his company. These factors determine the final value of the firm. So, the financial manager finds him in a very responsible position in a given organization where he works.

Note − A finance manager in a modern firm must know business best practices apart from understanding his responsibilities for the business he is involved in.

Considerations

Financial managers must have a good knowledge of various finance functions to shine in their careers. They must master the accounting standards, know about the automation tools, and should be able to analyze critical data in a timely manner. Finance managers need to make decisions on a day-to-day basis. So, they must be well aware of the financial condition of his business firm.

Finance managers were not involved in corporate decision-making not more than last three decades ago. They were not part of the dynamic nature of the businesses and so could not secure a position in the top brass of an organization. However, with the progress of business processes, the duties and roles have now changed and the finance manager has become a respected post and they are now considered one of the most vital employees in modern firms.

Note − A finance manager was not considered so valuable a member of a firm about three decades ago.