DUTIES AND RESPONSIBILITIES OF

FINANCE MANAGER
Who is Financial Manager
Chief Financial
Officer

Treasurer Controller
Contd……
 Chief Financial Officer (CFO)
◦ Oversees the treasurer and controller and sets
overall financial strategy.
 Treasurer
◦ Responsible for financing, cash management, and
relationships with banks and other financial
institutions.
 Controller
◦ Responsible for budgeting, accounting, and taxes.
Contd….
 Finance Manager has to find out from where
can raise the fund.
 Finance Manager has to think about the

investment decision.
 Finance Manager has to make financial

forecasting.
 Finance Manager has to maintain the

liquidity position of the firm.

Contd….
 Capital Budgeting decision.
 Dividend decision
 Working Capital management
 Cash Management
 Risk Management , Risk Diversification
 Portfolio Management
Contd….
 Merger and acquisition
 Valuation of share and the assets
 International Finance Management
 Implication of Govt taxation, interest policy
 Understanding the role of intermediaries in

finance
Contd….
 Analyzing the financial health of the
organization
 Preparing Budget for production, marketing

and finance dept.

 Managing payment and receivable.
 Framing the credit policy.
 Deciding regarding the source of finance
 Depreciation and replacement decision
Disinvestment and Shut down
 Decision regarding the disinvestment and
closure.
 Liquidation
 Sell off
 Merger
Objective of the Firm and Approach
 Profit maximization versus wealth
maximization
 Finance Manager has to think about the short

term and long term objective of the firm

 Finance Manager has to decide the capital

structure
 Finance manager think about the optimum

utilization of the resource for the desired

goal, or efficiency and effectiveness
Finance manager role in Current Time
 Understanding the implication of corporate social
responsibility with respect to profitability.
 Decision on the optimum size of the firm
 Decision on stock option , perquisites and

bonuses.
 Understanding and applying the modern financial

instruments such as factoring, derivative, credit

derivative, securitization and venture capital.
 Transfer pricing
 Understanding the Time Value of Money