Four Important Roles of Finance Manager | MITSDE

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Four Important Roles of Finance ManagerMITSDE

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https//www.mitsde.com
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About Us
Finance plays a key role in the overall growth of
an organisation. The success or failure of any
organisation primarily depends on the efficacy of
its financial management.
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Some of the major responsibilities of finance
manager

• Fund Raising
• Cash and liquidity play a significant role in
  proper fundraising for a business. The
  organization can raise funds either through
  equity of shares or through debentures.
  Therefore, there should be a balanced ratio
  between equity and debentures which is ensured by
  the finance manager.
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•   Allocation of the funds in the right place
• After raising the funds, their proper
  allocation is the next big step. It is again the
  task of a finance manager to allocate the funds.
  The manager should consider the size and growth
  capacity of the company while allocating funds.
  He should also keep in mind the kind of assets
  the firm is holding whether long term or short
  term. There should even be sufficient funds for
  the maintenance tasks such as replacement of old
  plants and machinery. He should also keep in mind
  the mode from where the funds have been raised.
  All these factors affect the firm in some or the
  other way.

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• Profit and its planning
• For every organization, earning profits is
  the fundamental aim other than customer
  satisfaction. Profit gives a reason to the
  organization for sustaining and thriving in the
  market. It is the task of a manager to formulate
  apposite strategies that maximize profits.
  However, it needs proper planning.
• There are various factors that determine the
  profits. They are stated as follows
• Economic state of the firm
• Price of the product
• Cost of production and selling price
• Demand and supply mechanism of the product

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• Considering the capital market
• There is continuous trading of shares in the
  stock exchange market which involves huge risks.
  A finance manager needs to have complete
  knowledge about the capital market so as to keep
  the firm at bay from any such risks. Hence, the
  main duty of the finance manager should be to
  calculate the risk in shares debentures and
  create a provision to minimise the risks.

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Conclusion

• A finance manager is one of the key persons of an
  organization with a huge role to play.
• That is why companies hunt for finance
  professionals and the market is flooded with
  ample opportunities for the right candidates.
• Our PGDM in Finance Management is a course that
  will entail the aspirants with essential skills
  and industry knowledge so that they can make
  solid financial strategies decisions.
• In a nutshell, they can do justice to their post
  of finance manager.

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