Financial management helps organizations to do so. This term refers to the effective and efficient planning, organizing, directing, and controlling the financial activities and processes of an organization. This includes fund procurement, allocation of financial resources, utilization of funds, etc., apart from various other functions.. The main goal of the financial manager is to maximize the value of the firm to its owners. The value of a publicly owned corporation is measured by the share price of its stock. A private company's value is the price at which it could be sold. To maximize the firm's value, the financial manager has to consider both short- and long-term.
What Does A Financial Manager Do? Career insights & Job Profiles
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Financial managers complete these tasks to track a company's assets: Reviewing statements: Reviewing banking activity, statements and reports allows the financial manager to spot discrepancies. Managing credit: As a company extends or utilizes credit, the financial manager keeps track of these transactions. Creating improvement in budget areas.. Now let's focus on the role that finance plays within an organization. In Chapter 1 "The Foundations of Business", we defined finance as all the activities involved in planning for, obtaining, and managing a company's funds. We also explained that a financial manager determines how much money the company needs, how and where it will get.
