Discuss the financial manager’s place in the corporation
The place of the financial manager may vary significantly. In fact the generic nature of this job title and description can be misleading; hence it should be carefully scrutinized as the role can vary enormously depending on the size of the company and job title.
The financial manager holds an important position in the structure of any corporation. He is the person who creates monetary value of the corporation from financing, capital budgeting as well as net-working capital actions. Financial managers are there in the corporation to oversee preparation of financial reports, execute all cash management strategies and direct corporations investments, (Siegel & Shim, 2009). Generally, financial manager’s place is to assess ways that suite the corporation, guided by stakeholder’s view of profit maximization and maximization of wealth.
Explain the main goal a financial manager is trying to achieve and the types of decision financial manager makes.
Notably, the manager has numerous goal and objective in cooperation. The main goal of a financial manager is to ensure that there is maximization of owner’s wealth as well as profit maximization. As a matter of fact financial manager should not be overwhelmed by his personal goals, which include earning reputation and higher salaries. It is automatically that when the financial manager achieves the ultimate goal of the corporation, his/her personal goals too will be achieved, (Moyer, et al, 2008).
The decisions financial managers make so as to achieve corporations goal deal with capital structure, working capital management and capital budgeting. A financial manger has to decide on the type of projects that the corporation should undertake (Siegel & Shim, 2009). Furthermore, financial managers help in making decisions on how the corporation investments should be funded.
Decisions on working capital management involve short-term assets of the corporation, such as inventory, cash, and debtors. In most situation financial accounting of the firm overlap with financial management, but financial accounting is concerned with reporting historical information on finance (Siegel & Shim, 2009). Financial manager’s decision is always directed towards the future progress of the corporation.
References
Siegel, G., Shim, J. (2009). Schaum’s Outline of Financial Management. London: McGraw-Hill.
Moyer, C. McGuigan, R & Kretlow, J. (2008). Contemporary Financial Management. New York: Wiley.