Financial managers are also responsible for planning, directing and coordinating the day-to-day business of an organization in accordance with its overall objectives.
Access to information is one of the most important resources for a financial manager. Information can be collected from a number of sources including reports, interviews with employees and surveys of customers.
Financial Manager Tasks
Tasks Financial managers are responsible for the following tasks:
- Determining the capital requirements of a business or government agency
- Managing the assets of a business or government agency
- Advising management on long-term strategies
- Monitoring market trends
- Interpreting financial information to determine a company's growth prospects
- Evaluating new products and services as they relate to company finances
- Allocating funds
- Creating short-term and long-term budgets
- Managing profit margins and expenses
- Oversight of investments and expenditures
- Analysis of competitors' finances
- Preparing forecasts and projections for future growth and profitability
What is the difference between financial management and accounting?
Financial management includes accounting but also includes other aspects of finance. Financial managers are concerned with the overall health of a company, from investments to long-term goals.
Although both accountants and financial managers deal with financial information, their positions differ in terms of authority and responsibility within an organisation's hierarchy. Accountants are responsible for compiling and maintaining information in the form of reports and records, while financial managers interpret that data, make recommendations based on it, then monitor the results to ensure that goals are met.
Accountants work independently in a team. They are responsible for ensuring that all internal controls are in place, that data is accurate and timely, and that standards are met. Accountants have little control over business decisions.
Financial managers evaluate data collected by accountants to examine business performance from a profit/loss perspective. They also use this information to predict future trends, identify opportunities for profit enhancement, and make recommendations for strategic planning to senior management.
One of the reasons financial managers enjoy their work is because they are able to use many different skills and are given a high degree of responsibility within their organisation.
