A business has many aspects that need to be taken care of. A person may be good at writing or maybe a good engineer. However, he may not be good at dealing with clients or working with the finance part. There are many departments in a company, that work together to make it a success. All the departments need a certain amount of money to run and there is a finance department that manages all these departments’ financial requirements.
Finance manager is responsible for this task
The work done by the finance manager can be called – Managerial finance. He is responsible for managing all the financial aspects, whether it is a big or small company, in the private or public domain and any other category. They perform a range of functions, from assessing the needs of each department, dealing with the legal aspects of finance, to the planning of each small and big expenditure.
Now businesses are global
With globalization, the reach of business companies has extended beyond their local or national boundaries. Now with businesses conducted at international levels, the financial manager has to conduct business at a bigger level, using different approaches. The rates of currencies and interest rates in different countries can change the profit level to a large extent. They also have to deal with the legal structure of financial aspects in different countries. All this makes their work more complex and more risk-prone.
What do they do exactly?
The responsibility of managerial finance expert includes understanding the financial techniques, that have an impact on the business. Their constant endeavor is to find ways to improve the profit margins and reduce the losses. It can be termed as the mix of both finance and management aspects. It does not deal with the techniques per se but deals with the assessment of the techniques to ensure that they work properly in terms of the business in question.
As we know any business survives only when it is successful and makes profits. The aim is always to reduce the expenditure and increase the savings and profits anyhow. So the managerial finance compares the techniques used by a company with others in the same niche and assesses the effectiveness. They try to improve better implementation of techniques. Their department assesses the present and future problems and ensures that the techniques are properly implemented and used to help the company work efficiently and make profits. It also ensures proper allocation of resources and ensures that the company achieves its goals in terms of reputation and financial profits.