Financial Manager Essay

The Financial Manager
Donnell Foote
MG516 Corporate Finance
ITT-Tech Online
Professor Vicky Black
January 30, 2012

Almost every firm, government agency, and other type of organization employ one or more financial managers. Financial managers oversee the preparation of financial reports, direct investment activities, and implement cash management strategies. Managers also develop strategies and implement the long-term goals of their organization.   The study of financial management concentrated on business securities and the markets in which they are sold and on how businesses could access the financial markets to raise capital.   All managers must understand the theory and principles of financial management because this knowledge will make them even more effective at their own specialized work (Pink, Gapenski. 2007).   The two primary responsibilities of the financial manager are the treasurer and controller.   The firm’s chief financial manager (treasurer) is responsible for the firm’s financial activities such as financial planning and fund raising, making capital expenditure decisions, managing cash, credit, the pension fund, and foreign exchange.   The firm’s chief accountant (controller), is responsible for the firm’s accounting activities such as corporate accounting, tax management, financial accounting, and cost accounting.   The specific goals of financial management depend on the nature of the business because larger organizations have financial management or accounting with separate functions.  
There are internal as well as external pressures involving the roles and changes of the financial manager like too much detail or more demanding shareholders. Part of the reason for these pressures is the link between performance management and management behavior. Whenever management processes are designed to control performance through a plethora of targets, budgets, incentives, and measures, uninspired leaders or frustrated managers are not trusted to...