Functions of Financial Managers

The functions and responsibilities of financial managers are:-

1) Forecasting and Planning

Financial managers must be able to forecast the company's future performance. It based on factors such as economic performance, customers' preference and the future demand for their products. Then, the financial manager will lay plans, which will shape the company's future position.

2) Investment and Financing Decision

Based on the forecasts and the plans mentioned , financial managers will be able to do :

i) Determine sales growth rates
ii) Determine what specific assets to purchase
iii) Determine the best method of financing those assets, whether to use debt or to
use equity .

3) Coordination and Control

Finance managers have to interact with other departments within the organization. It because the decisions of other departments might affect investment decisions.

4) Dealing with Financial Markets

As finance managers, they will have to deal with money markets and capital markets. The financial manager has to obtain financing either through the money market or capital market.