The Role Of Finance Managers

May 6
13:51

2008

Jay Moncliff

Jay Moncliff

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Finance is an umbrella term for the movement of money from one company to another (or individual) to pay for goods or services and repaid with interes...

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Finance is an umbrella term for the movement of money from one company to another (or individual) to pay for goods or services and repaid with interest. The term can also refer to another branch of the subject dealing with its management. If you prefer,The Role Of Finance Managers Articles it can also be a general term which encompasses the entire subject of managing and supplying money in the business and private sector. Management of finance has also developed into a specialized branch within the financial sector and is carried out by finance managers. This type of management uses funds either from internal resources or external and allocates them to areas to maximize profit. The function of the finance manager is to Optimize or enable the fund to be made available with as little cost to the company but provide for a profit to be made in this process. Bad debts are poor finance management where rules have not been followed; the result of this is depressed markets, low production and a cash crisis. It is for this very reason that finance managers are very careful with finance they agree too and where it is funded from.It is not uncommon to hear finance managers referred to as bean counters as they are looking at immediate returns and initial costs against the potential at a later stage. Unlike the sales managers who would like to invest in the future by product development, finance managers are rather skeptical of financing a project whose benefits lie in the future; even though their management governs future outcomes too. Some problems arise for the number of businesses that arrange loans and then use them for personal reasons, forgetting that this clearly defined barrier exists. When money is lent under these circumstances, lenders feel quite aggrieved as they have lost control of where the money is being invested.The aim is to educate businesses to act more responsibly when it comes to managing these issues and as a consequence their business. The problem is that many small businesses do not always source the best finance deal like trying their bank or alternatives like family or relations. However, finance managers are in the position of making money for their company so out sourcing their lending can help increase their profits. A famous quote about banks goes something like; banks are only interested and willing to lend money to those individuals that least need or want it.

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