Finance Manager & Manufacturing Sector

Prepared by :
Harshvardhan Patil Abhimanyu Bhatia Shobhit Tiwari Shilpa Saboo Meghna Avala

What does the Finance Manager do ?

General Perception Number crunching

What actually does ?

Planning and Forecasting 2. Financing Decision 3. Investment Decision 4. Dividend Decision 5. Financial Negotiation 6. Cash Management 7. Evaluating financial performance 8. Dealing with relevant parties in the Financial Markets
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Flow Chart
Financial Markets

Firms Operations Financial Manager Real Assets Investors

Financial Intermediaries
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Manufacturing firm structure

Finance Model of the Firm

CFO Management Accountant Financial Accountant Internal Auditor Credit Controller Accounts Payable Accountant Accounts Clerk

Chief Financial Officer

This is the senior manager who is responsible for overseeing the financial activities of an entire company. This includes signing checks to monitoring cash flow to financial planning.

Management Accountant

To establish, coordinate and administer, as an integral part of management, an adequate plan for the control of operations. To compare performance with operating plan and standards and to report and interpret the results of operation to all levels of management, and to the owners of the business. Administer tax policies and procedures. To consult withal segments of management responsible for policy or action conserving any phase of the operations of business. Risk Management.
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Finance Accountant

Responsible for managing liquidity, operation of bank accounts, ensure prudent and timely execution of payments; monitor and follow up financial risk exposures. Establish IT infrastructure, procedures and process descriptions.

Internal Auditor

Most publicly-traded companies have internal auditing teams to ensure not only compliance to internal structures, but also outside regulatory agencies such as the SEBI.

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Credit Controller
They keep a record of all communication with the customer and resolve all problems for clients, copy invoices, proof of delivery, credit notes, and liaise internally to progress any problems that are being handled in any other department.

Accounts Payable Accountant

He maintains an accounting entry that represents an organizations obligation to pay off a short-term debt to its creditors.

Accounts Clerk
An accounting clerk is a financial record keeper who uses specialized ledgers and software to record and process expenditures, receipts, payroll and all other financial transactions for a business or organization.
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ADMINISTRATION DEPARTMENT

MARKETING DEPARTMENT

HR DEPARTMEN T FINANCE DEPARTMEN T

PRODUCTION DEPARTMENT

R&D DEPARTMENT

TRADING DEPARTMEN T

IT DEPARTMEN T

MATERIAL DEPARTMEN T

Interaction with Other Departments

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PRODUCTION DEPARTMENT
* PRODUCTION CYCLE, *SKILLED AND UNSKILLED LABOUR, *STORAGE OF FINISHED GOODS, *CAPACITY UTILISATION.

THE COST OF PRODUCTION ASSUMES A SUBSTANTIAL PORTION OF THE TOTAL COST REPLACING MACHINERY, INSTALLATION OF SAFETY DEVICES.

MATERIAL DEPARTMENT
The finance manager and material manager in a firm may come together while determining ECONOMIC ORDER QUANTITY, SAFETY LEVEL, STORING PLACE REQUIREMENT, STORES PERSONNEL REQUIREMENT,

The costs of all these aspects are to be evaluated so the finance manager may come forward to help the material manager.

PERSONNEL DEPARTMENT

ENTRUSTED WITH THE RESPONSIBILITY OF RECRUITMENT TRAINING AND PLACEMENT OF THE STAFF THE WELFARE OF THE EMPLOYEES AND THEIR FAMILIES

THIS DEPARTMENT WORKS WITH FINANCE MANAGER TO EVALUATE EMPLOYEES WELFARE, REVISION OF THEIR PAY SCALE, INCENTIVE SCHEMES, ETC

MARKETING DEPARTMENT

THE SELLING OF GOODS AND SERVICES TO THE CUSTOMERS. ENTRUSTED WITH FRAMING

MARKETING, SELLING, ADVERTISING

ACHIEVE THE SALES TARGET. FRAME POLICIES TO MAINTAIN AND INCREASE THE MARKET SHARE,

CREATE A BRAND NAME ETC.

FOR ALL THIS FINANCE IS REQUIRED, SO THE FINANCE MANAGER HAS TO PLAY AN ACTIVE ROLE FOR INTERACTING WITH THE MARKETING DEPARTMENT.

Knowledge, Skills and Abilities

Solid understanding of accounting and financial planning principles Ability to prepare financial modelling and analysis Reviews and explains financial performance (actual vs. budget)

Interprets results relative to business and strategic objectives

Thinks in terms of the entire process (takes on the enterprise view) Utilizes a theoretical framework when evaluating the business Provides insight and suggest opportunities to improve Strong interpersonal and communication skill
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THANK YOU

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