What are the top 3 roles of finance manager?

A finance manager is hired to support an organisation’s executive management team through financial expertise and strategic decision making. Some of the critical responsibilities of a financial manager include:

Raising Funds:
It is necessary to keep enough cash and liquidity to meet the requirements of a business. A firm can raise funds through equity and debt. It is the responsibility of the financial managers to maintain the ratio between equity and debt.

Allocation of Funds:
Once financial managers raise funds, the next step requires you to allocate the funds. A good mix of assets and allocation of funds is a critical financial decision that influences other managerial activities. They must be distributed in the most optimised manner such as:

The firms’ growth capability and size
Long-term or short-term status of the assets
The model by which the funds are raised

Profit Planning:
It is essential for the survival and livelihood of any organisation. Profit is generated from various factors, including pricing, the competition between companies in an industry, mechanism of supply and demand and changes in economic conditions. Therefore, the financial manager must calculate the opportunity cost that can cause considerable fluctuations in profit.

Understanding Capital Markets:
A clear understanding of the capital market is an essential function of a financial manager. For example, when securities are traded on stock exchanges, there is always an inherent risk that comes with it. That means finance managers need to be able to calculate and measure these risks for themselves to mitigate them as much as possible before proceeding with any investing decisions.