...The Role of the Financial Manager Case Assignment (Module 01) 25 August 2010 TUI University Abstract This paper explains why I think the finance department is a good place to train future CEOs. I will also give a few examples of Pros and Cons regarding this subject. Additionally, I will briefly describe both of the responsibilities associated with these positions. The Chief Executive Officer (CEO) is the person who manages the company towards its goals, guided by its vision and relying on its mission and values. As the highest ranking corporate officer, the CEO aspires to ensure competitiveness and engage innovative strategies to reinvent and differentiate amongst competitors, regardless of products. While the rest of the company reports to this ‘big boss’, the CEO reports to the board of directors, in which the CEO may also be a part of. The CEO may be the owner of the company or may be appointed or elected. The Chief Financial Officer (CFO) is the top financial advisor, and it is the top finance position of the company. The CFO is responsible for the accounting, department, budgeting, reporting, audits, financial business practices, undertaken in compliance with industry standards, and ensuring the company is financially sound for meeting its business goals. The CFO is responsible for the finance strategy in the company on the basis of market trends, projections, forecasts and in consensus with other senior members of the company....
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...Question 3 Describe the role played by the financial manager of large corporation. Answers Since the finance is a large field, financial manager have a host of roles or duties that are guided by the titles and the nature of work they undertake. The role of a financial manager is a complex one, requiring both an understanding of how the business functions as a whole and specialized financial knowledge. The head of the financial operations is called the chief financial officer (CFO). The structure of the company varies, but a financial manager is responsible for the same general things across the board. The manager is responsible for managing the budget. This involves allocating money to different projects and segments so that the business can continue operating, but the best projects get the necessary funding. The manager is responsible for figuring out the financial projections for the business. The development of a new product, for example, requires an investment of capital over time. The finance manager is responsible for knowing how much the product is expected to cost and how much revenue it is expected to earn so that s/he can invest the appropriate amount in the product. This is a lot tougher than it sounds because there is no accurate financial data for the future. The finance manager will use data analyses and educated guesses to approximate the value, but it's extremely rare that s/he can be 100% sure of the future cash flows. Figuring out the value of an...
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...Important roles of the financial manager: The financial manager has a lot of roles, some important roles are: 1- First, he should select a target where he will invest the money; he should make a plan for the filed where he will take place in. 2- Second, he should think about different alternatives that offer money to begin the project, such as bank or a partnership. 3- Third, he begins turning these steps for a real work in the real life. He starts in day to day transactions or He began in the operation process. Note: financial manager is owner’s agent. المدير المالى يكون وكيل عن صاحب الشركه Important information: Stockholders are the owners of the business. اصحاب الاسهم : هم اصحاب العمل. Stakeholders are the external users who take advantages of the business. اصحاب المصلحه وهم الذين يستفيدون من العمل . Agent cost or problem: Problem happens between business’s owner and manager. - Sometimes problems take place between business’s owner and manager “conflict of interest “. Ex. Professors may advertise about their own courses and make student take some courses out of university which cost the university student’s truth and the professors earn money while the university loss it. فى بعض الاحيان تنشأ مشاكل بين صاحب العمل والمدير "الوكيل" والتى تسمى "تضارب المصالح" ففى بعض الاحيان يعمل المدير لحسابه الشخصى مما يضر بالمؤسسه التابع لها او بارباح صاحب العمل. Cost of...
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...Role of a Manager within the Functional Areas of Business Jennifer Nunez University Of Phoenix Role of a manager within the functional areas of business Managers in a business are the brain of the business and therefore, considered the most vital aspect of business. Managers are the coordinators and administrators of the business. For a business to succeed, managers are assigned different functions in the most vital departments of the business (Cook & Macaulay, 2013). These departments include human resource, finance, marketing and, operations. The departments oversee the critical segments of the business allowing the business to run smoothly with the help of managers who have specified roles for each department. The roles of the managers in each department are unique considering the difference in the requirements and activities of the departments. The functional areas of a business are run by managers who are responsible for all activities and provide reports to the main governing body of the business. The role of managers in all functional areas of the business is critical for the success of the business (Cook & Macaulay, 2013).. The human resource of the business is an important department because it deals one-on-one with employees of the organization. The purpose of human resource is essentially to reinforce the relationship of employees and their employers. The manager is therefore expected to foster the goal of human resource...
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...Role of a manager within the functional areas of business Managers in a business are the brain of the business and therefore, considered the most vital aspect of business. Managers are the coordinators and administrators of the business. For a business to succeed, managers are assigned different functions in the most vital departments of the business. These departments include human resource, finance, marketing and, operations. The departments oversee the critical segments of the business allowing the business to run smoothly with the help of managers who have specified roles for each department. The roles of the managers in each department are unique considering the difference in the requirements and activities of the departments. The functional areas of a business are run by managers who are responsible for all activities and provide reports to the main governing body of the business. The role of managers in all functional areas of the business is critical for the success of the business. The human resource of the business is an important department because it deals one-on-one with employees of the organization. The purpose of human resource is essentially to reinforce the relationship of employees and their employers. The manager is therefore expected to foster the goal of human resource in a business (Suttle, 2014). The manger is responsible for the competence of all employees of the business. The role of a manger in the human resources department ensures...
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...[pic] Financial Management Process© For [Project Name] 1 Introduction The Project Financial Management Process is followed after the initial project budget has been documented and approved during the Project Initiation phase of the Project Management Life Cycle. What is a Financial Management Process? A Financial Management Process is a method by which costs (or expenses) incurred on the project are formally identified, approved and paid. Typical types of costs include: • Labor (e.g. staff, external suppliers, contractors and consultants) • Equipment (e.g. computers, furniture, building facilities, machinery and vehicles) • Materials (e.g. stationery, consumables, building materials, water and power) • Administration (e.g. legal, insurance, lending and accounting fees). © When to use a Financial Management Process The Financial Management Process should be initiated after the expected Financial Expense Form has been created and approved during the Planning phase of the project. This process provides a mechanism for monitoring and controlling the actual financials of the project against those that were originally planned/budgeted. It important to formally track expenses throughout all phases of the project, otherwise, it may become impossible to accurately manage the project constraints of time, budget and quality. 1.1 Instructions Complete all sections of this form. If a particular section is...
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...(Robbins & Coulter, 2012). The role of organizations in a corporation has a different level of the importance, but all organizations must need to achieve the corporation’s goal effectively and efficiently. Most corporations must need people who manage the organization, and then managers have a different role to support a corporations’ competitiveness. According to Gilbert (1996) “Making broad strategy for a company is one of the major tasks of general managers. This involves setting long-term directions and goals, and allocating resources, so that the directions can be pursued, and the goals can be reached” (p.13) To improve corporation’s competitiveness, the manager in the functional areas takes some roles. There are two structures of the role of manager. One is the management function from Henri Fayol, and the other one is the managerial roles from Mintzberg. Henri Fayol’s the four functions of management are planning, organizing, leading and controlling and Mnitzberg’s the roles of a manager divide by interpersonal relationship, the transfer of information, and making decision. (Robbins & Coulter, 2012). All managers in the organizations like Marketing, R&D, Manufacturing, Human Resources, and Finance must have both structures. They make plans of goal and strategies to succeed, and organizing. Then they lead and control their members to accomplish goals. Furthermore, they have different roles divided their working part or level of positions. Managers are the leader and the figurehead...
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...with cutting out some of the added amenities, no jobs will have to be cut. Organizational Chart Purpose of Each Role The purpose of the role of CEO is overseer of the entire organization. Each final decision that is made has to have the approval of the CEO. Before any cuts are made the proposal has to be signed off by the CEO. The position is the most important position in an organization like a health care facility. The person with this position has to know what is going on at all times. It was the decision of the CEO to appoint a project manager to work closely with the financial manager to create a way to cut the spending and Baylor Regional Medical Center without having to lose any employees. The project manager’s role in this particular project was to first meet with the financial manager to get a sense of where the most money was being spent that could possibility be cut. After that meeting, the project manager would meet with each affected department and give them an overview of what needs to happen in the next 30 days. A report detailing what is spent a month on everything from salaries, supplies, catering, travel, training, this would also include that manager’s salary as well. The financial manager’s role in this project would be to help each department create these reports that they would need for the next meeting. The financial manager will be the key to the entire project, because this person would be able to tell if what we propose to do will...
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...Roles, authority and involvement of the management accounting function: a multiple case-study perspective Caroline Lambert HEC, Paris 1, rue de la Libération 78351 Jouy en Josas Cedex lambert@hec.fr Samuel Sponem Conservatoire National des Arts et Métiers GREG-CRC (EA 2430) samuel.sponem@cnam.fr Acknowledgements The authors are grateful to participants at the European Accounting Association Conference 2009, the Accounting department ESSEC seminar, France, and at the seminar of Ecole de Comptabilité de l’Université Laval, Québec, Canada for their constructive comments on earlier drafts of this paper. They also wish to thank and useful suggestions of members of the CriM group, Martin Messner and Juhani Vaivio. We would particularly like to thank Markus Granlund and the two anonymous reviewers for their many helpful comments and suggestions. Both authors thank ‘Fondation HEC’ and ‘Agence Nationale de la Recherche’ for their fundings. Abstract Recent techniques and shifts in the environment are often foreseen as leading management accountants to adopt a business orientation. However, empirical evidence pointing to fundamental shifts in the roles played by management accountants remains relatively scarce. We explore this paradox and give sense to the various roles played by the management accounting function by focusing on how management accountants are involved in and endowed with authority in decision-making situations. Using data we gathered from 73 interviews in ten...
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...Marks & Spencer is Europe’s most profitable retailer with a global brand and global recognition. Its achievement largely depends on the effective use of people. An organisation may have the latest technology and the best physical resources, but it will never thrive if it does not value its people. Its most valuable asset will always be its people and the work they do. For Marks & Spencer, this means that the people who look after customers, select and merchandise the products and run the operations, must aspire to be the best qualified and equipped in retailing. This case study focuses on the challenging role of the Financial Manager behind the scenes at every Marks & Spencer store. In doing so, it highlights many of the qualities, such as leadership, adaptability and analytical consideration, required by Financial Managers every day in a busy retail environment. Working for a retailer Retailing is ‘the practice of selling goods in small quantities to the general public.’ It is a business where employees come face-to-face with customers every day. Customers can be very demanding - they enter a store and expect their needs to be met immediately, irrespective of whether the lorries delivering bakery goods are stuck in snow or that a key supplier is having production problems. Many businesses in different types of environment are able to keep their customers at arm’s length. If they need to do some training or catch up on paperwork, it is relatively easy to make time...
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...CHAPTER 1 NATURE OF FINANCIAL MANAGEMENT Q.1. A.1. Q.2. A.2. Q.3. A.3. Q.4. A.4. Define the scope of financial management. What role should the financial manager play in a modern enterprise? The scope of the financial management is to secure the capital needed by the enterprise, and employ it in production and marketing activities, in such a way that it can generate the sufficient returns on invested capital, with an intention to maximise the wealth of the owners. The financial manager plays the crucial role in the modern enterprise by supporting investment decision, financing decision, and also the profit distribution decision. He/she also helps the firm in balancing cash inflows and cash outflows, and in turn to maintain the liquidity position of the firm. How does the modern financial manager differ from the traditional financial manager? Does the modern financial manager's role differ for the large diversified firm and the small to medium size firm? The traditional financial manager was generally involved in the regular finance activities, e.g., banking operations, record keeping, management of the cash flow on a regular basis, and informing the funds requirements to the top management, etc. But, the role of financial manager has been enhanced in the today's environment; he/she takes an active role in financing, investment, distribution of profits, and liquidity decisions. In addition, he/she is also involved in the custody and safeguarding...
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...important part in helping understand how profits and expense amounts are derived. One form of accounting I will focus on is managerial accounting or also known as management accounting. Managerial accounting is the process of identifying, analyzing, recording and presenting financial information that is used for internally by the management for planning, decision making, and control. Managerial accounting provides economic and financial information for managers and other internal users (Managerial, 2005). When you tell people about managerial accounting, the first thing they ask is “What’s the difference between managerial and financial accounting?” There are both similarities and differences between managerial and financial accounting. The major similarity each field shares, is that they both deal with the economic events of a business. As an example, determining the unit cost of manufacturing a product is part of managerial accounting. Reporting the total cost of goods manufactured and sold is part of financial accounting (Managerial, 2005). Managerial accounting provides the information to people with an organization while financial accounting is mainly for the outsiders, like shareholders. Also financial accounting is required by law, managerial accounting is not. To sum up the popular question, managerial accounting is...
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...Roles and Functions of a Health Care Manager Health care managers have many roles and responsibilities in health care facilities today. One of the most important roles of a health care manager is making sure the facility can run smoothly. Making sure a facility operates smoothly includes many tasks that provide one outcome, a productive and efficient facility. The health care manager takes on many roles and responsibilities including organization, planning, and controlling resources (Lombardi, Schermerhorn, &Kramer, 2007). Leading and influencing others is also very important as a role of a health care manager (Lombardi, Schermerhorn, &Kramer, 2007). No matter what type of health care facility a manager is responsible for there are many roles that carry over in to each facility such as caring for personnel, making schedules, keeping structure within an environment, regulating care, and managing finances or facilities (Writing, 2011). Managers within a health care facility tackle many roles on a daily basis. Caring for personnel can be made easier if the health care manager has an open communication line with all departments. Having inner communication in a facility can help to improve overall moral which will improve the overall quality of care provided to the patients who visit the facility. Keeping up with structure and scheduling within a facility is also a daily operation of a health care manager. I think that I would most love to walk away from this class after...
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...balance sheet or statement of financial position. The balance sheet is a financial report that is created from the trial balance. When preparing the balance sheet, the trial balance is used as a starting point. All trial balance accounts are aggregated into balance sheet elements. The balance sheet provides a snapshot of a company’s financial position on a given date. This report contains a total of all assets, liabilities and shareholders’ equity. The most important concept in the balance sheet is that the total assets should equal the total liabilities plus shareholders’ equity. On one side of the balance sheet all of the assets are listed. The other side of the balance sheet lists the liabilities and shareholders’ equity. Assets are considered to be all property or valuable rights that are owned by the company. Assets can include items such as property, cash, and inventory. Liabilities are the financial debts and obligations owed by the company. Items in the liability section can include accounts payable and long term debt. The shareholders’ equity is the difference between the total assets and total liabilities and represents the residual value of the company, after liabilities, to the shareholders’. The most common items shown in the shareholder’s equity section are common stock, preferred stock, additional paid-in capital, and retained earnings. 2. Describe the nature of income statement An income statement is the component of financial statements which summarizes...
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...Role of Chief Financial Officer Role of Chief Financial Officer The fall of Enron and other giant companies such as WorldCom and Tyco have drastically changed the practice of corporate finance especially the role of CFO's. During pre Enron, the main responsibilities of a CFO was to manage cash flows and present the numbers in the manner that would make sense to the members of board and the CEO. Now, CFOs have to be able to manage a more complex tasks and be able to adapt to the piles of new regulations. Other factors that contribute to the evolution or the CFO's role is globalization. American multinational companies are expanding operations overseas thus must take into account the effects of currency fluctuation in decision making. The article from Business week on the "Boards and the Expanding Role of the CFO" will identify key factors to which CFO roles have evolved today. 1. CFOs have emerged as key business partners to the CEO 2. CFOs now spend more time on strategy and operating issues and less on budgeting and accounting 3. Directors should work with CFOs more closely 4. CFOs are a bridge to investors that directors need (Butler and Quint, 2009, para 2-5). Also the article states that the board needs to adjust their views of the CFO function and should be pushing for succession planning for CFOs as much as the CEOs (Butler and Quint, 2009). This review will explain the four key roles from the Business Week article and how these roles have...
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