Question

what are the main function of financial managers

Answer 1

Main functions of financial managers :

1) Determining capital structure : Financial manager must ensure that earning rate is higher than interest rate on borrowed amount.

2) Sources to raise funds : Fund can be raised through equity, preference shares, debentures, bonds and financial institutions.

3) Utilization of funds : Financial manager must take care of maximum profitability, liquidity of funds. Funds must be utilized in such a way that firm does not face shortage of funds in near future.

4) Disposition of profits : Analysis of funds that can be invested for proper working of organization & distributing the rest among the shareholder's.

5) Managing the cash : Manager must ensure that sufficient funds are available to purchase the material & meet daily expenses.

6) Financial performance : It envolves evaluation & control of financial performance of and organization.