0
A modern finance manager is totally different from traditional finance manager. Initially the finance manager was concerned and called upon whenever funds were required by the firm. The traditional finance manager was given a target amount of funds to be raised and was given the responsibility of procuring these funds. So, his function was for raising the funds only. Once the funds were procured his function was over. However, over a period of time, the scope of his function is tremendously widened. His presence at present is required at every moment whenever the decision involving funds is to be taken. The functions of traditional finance manager are:
-
Overall financial planning and control
-
Raising funds from different sources
-
Selection of fixed assets
-
Management of working capital
-
Any other financial event
While performing these functions the scope of finance manager increased from traditional to modern and so has their working.
Today, a modern finance manager has to operate a link between firms operations on one hand and the capital market on other hand. The role of finance manager as an intermediary arises because of two way cash flows between the firm and the investors in the first instance the investors provide funds through capital market to the firm and second, the firm distributes profit among the investors in the form of interest or dividends. So the finance manager has to take care of the interest of the investors as well as the firm.
While performing these functions, he is required to take different decisions which can be broadly classified into 3 groups:
-
Investment decision: Firms has scarce resources that must be allocated among competitive uses. The investment decisions include not only that create revenues and profits but also those that save money.
-
Financing decision: Financing decision deals with the financing pattern of the firm. As a firm makes decisions concerning where to invest these resources they also have to decide how they should arise resources. There are 2 main sources of finance-
a. The shareholders funds
b. Borrowed funds
The borrowed funds are always repayable and the shareholders funds are not repayable.
- Dividend decision: Another major area of decision making by a finance manager is dividend decision. It deals with appropriation of profits after tax. These profits are available to be distributed among the shareholders or can be retained by the firm for reinvestment within the firm.
What else can I help you with?
Modern financial manager vs traditional financial manager?
The modern financial manager uses computer technology to develop strategies. The traditional financial manager uses research and evaluation to develop strategies.
Does the modern financial manager's role differ for the large diversification firm and small to medium size firm?
Yes, the role of a modern financial manager differs significantly between large diversified firms and small to medium-sized firms. In large diversified firms, financial managers often focus on complex financial strategies, risk management, and capital allocation across various business units, requiring a broader understanding of market dynamics and corporate finance. In contrast, financial managers in smaller firms typically concentrate on operational finance, cash flow management, and resource allocation, often wearing multiple hats and being more involved in day-to-day financial operations. Thus, the scope and complexity of their responsibilities can vary greatly based on the firm's size and diversification.
What are the Functions of traditional financial manager?
The functions of a traditional financial manager include financial planning, which involves setting goals and forecasting future financial performance; investment decision-making, where managers evaluate and select projects or investments that will yield the best returns; and financing decisions, which entail determining the best sources of funds to support operations and growth. Additionally, they oversee financial reporting and analysis to ensure accurate financial statements and compliance with regulations. Overall, their role is crucial in optimizing a firm's financial resources to achieve its objectives.
Who is the manager at elan financial services?
There are several different managers for Elan Financial Services because there are about 2000 branches around the country. It would be hard to find all of the branch managers.
What is hierarchy of employment in axis bank?
The hierarchy of employment in an Axis Bank begins with management. Under the junior manager are the clerks and officers. Under the middle manager is the managers and senior managers. Under the Senior Managers are the chief managers and assistant general managers. Under top management are deputy general manager, general manager, chief financial officer, chief executive officer, then president.
Modern financial manager vs traditional financial manager?
The modern financial manager uses computer technology to develop strategies. The traditional financial manager uses research and evaluation to develop strategies.
How does the modern financial manager differ from the traditional manager?
The modern financial manager is more focused on strategic planning and decision-making than the traditional manager. The traditional manager is more focused on operational tasks and day-to-day management.
How does modern financial manager differ from the traditional financial manager?
The modern financial manager is more focused on strategic planning and decision-making than the traditional manager. The traditional manager is more focused on operational tasks and day-to-day management.
What are the challenges facing the financial manager?
Finance managers problem
How does the modern financial manager differ from the tradition financial?
The modern financial manager is more focused on strategic planning and decision-making than the traditional manager. The traditional manager is more focused on operational tasks and day-to-day management.
Does the modern financial manager's role differ for the large diversification firm and small to medium size firm?
Yes, the role of a modern financial manager differs significantly between large diversified firms and small to medium-sized firms. In large diversified firms, financial managers often focus on complex financial strategies, risk management, and capital allocation across various business units, requiring a broader understanding of market dynamics and corporate finance. In contrast, financial managers in smaller firms typically concentrate on operational finance, cash flow management, and resource allocation, often wearing multiple hats and being more involved in day-to-day financial operations. Thus, the scope and complexity of their responsibilities can vary greatly based on the firm's size and diversification.
What are the Functions of traditional financial manager?
The functions of a traditional financial manager include financial planning, which involves setting goals and forecasting future financial performance; investment decision-making, where managers evaluate and select projects or investments that will yield the best returns; and financing decisions, which entail determining the best sources of funds to support operations and growth. Additionally, they oversee financial reporting and analysis to ensure accurate financial statements and compliance with regulations. Overall, their role is crucial in optimizing a firm's financial resources to achieve its objectives.
Who is the manager at elan financial services?
There are several different managers for Elan Financial Services because there are about 2000 branches around the country. It would be hard to find all of the branch managers.
What is hierarchy of employment in axis bank?
The hierarchy of employment in an Axis Bank begins with management. Under the junior manager are the clerks and officers. Under the middle manager is the managers and senior managers. Under the Senior Managers are the chief managers and assistant general managers. Under top management are deputy general manager, general manager, chief financial officer, chief executive officer, then president.
What are the decisions taken by financial managers?
Decisions are not taken, they are made. Financial managers obviously make decisions about MONEY. Where to spend it and how much and why. Business owners are typically the financial manager of a company simply because they want to make money.
Why is liquidity important to the financial manager?
how does market liquidity, competitiveness, and efficiency impact financial managers in regards to telecommunications AT&T and Verizon Wireless
What is the scope of financial objective of business organizations?
Financial objectives are created to guide managers with their financial decisions. By comparing their decisions to the financial goals of the organizations, the manager can determine whether they are on the right track.
