FUNCTIONS OF FINANCIAL MANAGER
1. Assessing the Amount of Capital Required:
(i) Buying of machinery and other fixed assets
(ii) Meeting working capital prerequisites
(iii) Modernisation and development of business.
2. Deciding Capital Structure:
Once the necessity of capital assets has been resolved, a choice with respect to the kind and extent of different wellsprings of assets must be taken. For this, monetary administrator needs to decide the best possible blend of value and obligation and fleeting and long haul obligation proportion. This is done to accomplish least cost of capital and expand shareholders riches.
3. Selection of Sources of Funds:
Before the genuine acquisition of assets, the back supervisor needs to choose the sources from which the assets are to be raised. The administration can raise back from different sources like value shareholders, inclination shareholders, debenture-holders, banks and other monetary organizations, open stores, and so forth.
4. Acquirement of Funds:
The money related supervisor finds a way to secure the assets required for the business. It may require arrangement with loan bosses and monetary establishments, issue of plan, and so on. The acquirement of assets is endless supply of raising assets as well as on different variables like general economic situations, selection of financial specialists, government strategy, and so on.
5. Usage of Funds:
The assets acquired by the budgetary supervisor are to be judiciously put resources into different resources in order to boost the arrival on speculation: While taking venture choices, administration ought to be guided by three critical standards, viz., security, productivity, and liquidity.
6. Transfer of Profits or Surplus:
The monetary administrator needs to choose the amount to hold for furrowing back and the amount to disseminate as profit to shareholders out of the benefits of the organization. The variables which impact these choices incorporate the pattern of profit of the organization, the pattern of the market cost of its shares, the prerequisites of assets for self-financing the future projects etc.
7. Administration of Cash:
Administration of money and other current resources is a critical undertaking of monetary director. It includes estimating the money inflows and surges to guarantee that there is neither lack nor overflow of money with the firm. Adequate assets must be accessible for buy of materials, installment of wages and meeting everyday costs.
8. Budgetary Control:
Assessment of budgetary execution is additionally a vital capacity of money related supervisor. The general measure of assessment is Return on Investment (ROI). Alternate methods of money related control and assessment incorporate budgetary control, cost control, interior review, earn back the original investment examination and proportion investigation. The money related director must lay accentuation on monetary arranging also.
