DUTIES AND RESPONSIBILITIES OF FINANCE MANAGER.

1. Cash and Working capital management decisions.

Finance manager monitor and control the flow of cash that comes in and goes out of the company
to meet the company's business and investment needs. For example, they must project cash flow
(amounts coming in and going out) to determine whether the company will not have enough cash
(and will need a loan), or will have more cash than needed (and can invest some of its money).
Also finance manager must ensure that he/she increase the range of opportunities open to an
enterprise to pursue its strategic plan. A liquidity problem, apart from being expensive. Reduces
options, and diverts the attention of management away from a longer-term perspective.
2. Dividend decisions.
The decision whether to retain earnings for capital investment and other purpose or to distribute
earnings in the form of dividend among shareholders or to retain some earnings and to distribute
remained earning to shareholders.
3. Portfolio Management.
Finance manager must be able to identifying, selecting and managing a portfolio of projects in
alignment with key performance metrics and strategic business objectives.
4. Inventory Management.
Finance manager must have the ability to manage and making Investment Decision relates to the
determination of total amount of assets to be held in the firm, the composition of these assets and
the business risk complexions of the firm as perceived by its investors. It is the most important
financial decision. Since funds involve cost and are available in a limited quantity, its proper
utilization is very necessary to achieve the goal of wealth maximization.
5. Budgeting.
A finance manager determines and evaluates potential expenses or investments that are large in
nature. Such expenditure can be anything like having a new branch office or investing in a new
long-term venture. Apart from these, there are many other important responsibilities that a finance
manager shoulders. One cannot undermine the role of finance personnel.
6. Financing decisions.
The financing decision is the crucial decision made by the financial manager relating to the
financing-mix of an organization. It is concerned with the borrowing and allocation of funds required
for the investment decisions. The financing decision involves two sources from where the funds
can be raised: using a company’s own money, such as share capital, retained earnings or
borrowing funds from the outside in the form debenture, loan, bond, etc. The objective of financial
decision is to maintain an optimum capital structure, i.e. a proper mix of debt and equity, to ensure
the trade-off between the risk and return to the shareholders.
7. International financial decisions.

Finance manager should be familiar and make decisions on the exchange rates and political risk
and need to understand the customs of other countries.
8. Investment decisions.
A finance manager conducts an in-depth study about the investment that a company should make
and the possible ROI (Return on Investment). He provides a broader selection of investment
opportunities with a lower risk. So a finance manager has to do risk analysis too.
9. Risk Management.
Finance manager control financial risk by using hedging and other strategies to limit or offset the
probability of a financial loss or a company’s exposure to financial uncertainty. Among the risks
they try to limit are those due to currency or commodity price changes.

10. Decision related to acquisition and merger.

Finance manager must understand the component of corporate strategy that deals with the
combining, buying and selling of companies or assets to promote the growth of the enterprise in its
sector. The combining of two companies can boost financial power, market share, and business
activity — allowing the newly formed company to further develop and expand within its sector. It
can also provide opportunities to synergize by driving efficiencies through economies of scale .