Financial managers keep track of a company’s finances, analyze data, and offer advice to top management on how to increase earnings. They frequently operate as part of a team, contributing to making important organizational choices, a task that necessitates analytical ability and excellent communication skills. In addition, in reaction to technological advancements that have considerably reduced the time it takes to prepare financial reports, the function of the financial manager is evolving, particularly in business.
Financial managers are responsible for responsibilities unique to their company or industry. Government financial managers, for example, are in charge of government appropriations and budgeting. In contrast, healthcare financial managers are in control of all financial elements of hospitals, physician groups, managed care facilities, and other medical providers.
The following are some types of financial managers:
Controllers
They supervise the preparation of financial reports such as income statements, balance sheets, and forecasts of future earnings and expenses that summarize and forecast the organization’s financial condition. Controllers are also in charge of drafting specific reports requested by government regulatory agencies. In addition, controllers are often in charge of the accounting, auditing, and budgeting divisions.
Treasurers
Financial managers direct their organizations’ budgets to satisfy the organization’s financial objectives. They are in charge of the money’s investment. They implement capital-raising tactics (such as issuing stocks or bonds) to fund the company’s expansion. They also create financial plans for mergers and acquisitions (when two companies merge) (one company buying another).
Cash managers
To satisfy the organization’s business and investment needs, cash managers monitor and control cash movement in and out of the company. They must, for example, forecast cash flow (amounts flowing in and out) to assess if the company will be short on cash (and hence require a loan) or will have more cash than is needed (and can invest some of its money).
Risk management specialists
These executives are in charge of managing financial risk by employing hedging and other measures to reduce or eliminate the likelihood of a financial loss or a company’s exposure to financial risk. Currency and commodity price fluctuations are one of the hazards they aim to avoid.
Insurance managers
Insurance managers determine how to effectively limit a company’s losses by getting insurance against risks such as the need to give disability payments to an injured employee on the job and any expenditures incurred as a result of a lawsuit filed against the company.
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