Essay on Roles Of A Financial Manager

854 Words Nov 9th, 2015 4 Pages
The Roles of a Financial Manager are many but their primary goal is to warrant growth of the proprietor’s wealth and to ensure maximum profit of the company. When a financial manager achieves his or her personal goals of a company, they too will be achieved, (Moyer, et al, 2008).
The decisions a financial managers makes are capital structure, working capital management and capital budgeting. A financial Manger has to decide on the type of projects that the company should undertake (Siegel & Shim, 2009). Financial managers help the company make decisions on how the company invests their funds; company has to have a diversity of real assets in order to operate successfully. Most of the company’s assets are tangible, meaning such things as machinery the company use, offices equipment etc.…; its trademark, and patents are intangible. In order for the company to pay for all of their assets it has to sell assets, or securities, for instances, if a company borrows money from a financial institution, the financial institution would have the financial asset; in turn that asset gives the institution claim on the interest payments. Therefore, the company’s real assets need to yield sufficient cash to satisfy the financial institutions entitlements. Their decisions on working capital management involve short-term assets of the corporation, such as inventory, cash, and debtors. In most situation financial accounting of the firm overlap with financial management, but financial accounting…

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