As the term suggests, “Finance Manager” is responsible for managing finances and ensuring the financial well being of the organisation. Their role can be divided over major finance verticals for a better understanding.
If you are planning to take up professional courses in finance, it is pertinent that you know different roles it entails so that you can decide which area is your forte.
Role of Financial Manager
Budgeting & Forecasting
This role requires finance manager to make financial projections, revisions, forecasting, variance analysis against the standards, preparation of reports and overall analysis of the financial performance of the entity. To carry out these activities, he needs strong coordination and communication skills.
Month End Activities
These activities typically include preparation of trading accounts, income statements and balance sheets. As a run-up to this, the finance manager is required to finalise provisions, reconcile accounts, co-ordinate with branches, subsidiaries and parent company for month-end closures. This process is followed by uploading financial statements and calling internal meetings for performance review.
Taxation & Statutory
The finance manager is required to coordinate with auditors and tax consultants for finalisation of tax liabilities- both direct and indirect, preparation of returns such as TDS, Service Tax, GST etc. He has to ensure that all statutory dues are paid and returns filed on time. He has to further handle ongoing assessments and attend meetings with statutory departments and auditors concerning tax issues.
Credit Control & Payables Management
It involves monitoring collection of dues, preparation of debtors ageing report, revision and estimation of bad debt provision, maintaining cordial relation and dialogue with customers, ensuring timely payables management including disbursement and customer-vendor relations and coordinating with banks and funding agencies.
This role requires a financial manager to monitor Inflow and outflow of funds as per the requirement of the organisation. He is responsible for handling investments of excess funds on hand, cash flow forecasting and arranging loans to meet day to day and long term requirements of the organization.
Financial Analysis, Presentations & Reporting
It requires finance manager to prepare presentations and performance reports for higher management, specific decision making regarding pricing, expansion, leasing and purchases etc. Reports for shareholders, external stakeholders and board are also prepared by finance manager, along with financial review and overall performance reporting.
As you can understand from the above roles, there is tremendous scope for people aspiring a career in finance. It would be a good idea to enrol in online finance courses to get detailed insight into each domain that a financial manager handles and then choose the one that suits your aptitude and interest.