To understand the financial position of your organization, you will need to consult the finance manager of that organization as he is the right person dealing with the numbers of your organization day in and out. The finance professional of a company is your go-to person who updates you on that company’s financial health. Read on to know what roles a finance professional performs and the types of finance professionals in an organization.

Types of Financial Professionals

Finance Manager

The Finance Managers take care of the organization’s financial aspects from planning to analysis, reporting, and managing risks, everything they look after. Financial Managers have an essential role to play in making financial decisions of the organization.

Controller

The controllers mainly perform reporting activities such as financial statements preparation and various analytical reports to forecast the organization’s financial needs.

Treasury Manager

Treasury Managers look after the capital requirements of the organization to make sure the activities are performed as expected in the budgeted plan. Raising capital and performing investing activities are also functions performed by the Treasurers.

Roles Performed by the Financial Professionals

In simple words, finance professionals actively participate and manage the financial side of the organization. While specific organizations will have separate finance professionals carry out the functions individually, the others will have only one finance manager that takes care of the following activities.

Financial Planning and Analysis

The Finance Managers plan financial activities and analyze the details and information to understand how to plan the financial activities for the organization, further considering the economic conditions. Financial activities such as budgeting, financial planning, financial modeling, and performance reporting are included, performed by the financial managers.

Raising and Allocating Funds

Raising funds for the organization and allocating them in the best possible manner is a crucial task. The Finance Managers make decisions on raising funds through equity or debt. The fund raised is allocated for the purpose they were raised, such as operational and growth, and expansion activities.

Financial Decision and Control

Considering various financial analyses and activities of the organization, finance professionals make essential financial decisions. They also exercise control over the financial side of the business to make sure the operational and other activities are running smoothly in the organization.

Cash Flow Management

Meeting cash flow and the working capital requirements are crucial to make the business running. Financial Managers play an essential role in managing accounts payable and receivable to meet the cash flow requirements. These professionals also work closely with various department heads to understand the working capital requirements.

Risk Management

Managing and mitigating risks of the organizations comes under the purview of the duties performed by the financial managers. They analyze possible threats to the financial management of the business, review weaknesses of the organization to deliver results and make plans, and take necessary actions to mitigate such risks. Typically, they perform a SWOT analysis to assess the risks related to the organization.

Financial Reporting

Financial statements reflect the organizational activities and explain how the previous financial year was for the company financially. Finance professionals prepare financial statements and reports for the company management, auditors, and stakeholders by adhering to the accounting standards and rules applicable to the organization.

Final Words

Succinctly, finance professionals work closely with the CEOs and the board of directors to ensure the organization’s financial health is maintained throughout. The roles and responsibilities mentioned above are inclusive but not exhaustive. They represent the most significant roles and duties performed by the finance professionals.