Finance Manager Job Description & Profile

Finance Manager Job Description and Profile

The finance department handles every aspect of corporate financial management. Finance managers are mid- or senior-level professionals. They are responsible for all their organisation’s financial activities. The responsibilities entrusted to finance managers are consistent across industries and corporations. Their main task is to ensure the company’s economic well-being. They engage in budgeting, reporting, compliance, and risk management to achieve their goals.

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Here Are Some of the Main Job Responsibilities for Finance Managers:

Budgeting and Financial Planning

The finance department has the prime responsibility of managing the financial budget. The process starts with finance managers sourcing the data from various departments. After that, they collaborate with top management and department leaders. They develop comprehensive budgets for a variety of projects and divisions.

The budgeting exercise lays the groundwork for how the company will proceed in the coming year. At this point, management must make critical decisions. The budgeting exercise allocates resources for every initiative or operational activity.

Reporting the Numbers

Reporting is an ongoing activity that executives in the finance department must perform. A business must turn a profit. Finance managers are responsible for tracking profitability and related metrics. They do this for the company and within each department or product line. The finance department serves as the eyes of the top management. It also serves external stakeholders. It provides a glimpse into the business’s operations.

These reports are the most important indicators of how well a specific product, department, or business vertical is doing. Thus, some companies review these reports daily. The finance department ensures all managers have well-presented statements. It makes sure they are relevant. These statements must be in a format that is understandable and actionable.

The relevant numbers for each department head might differ. Finance managers must provide each head with what they need. For example, the HR Department might only need numbers related to payrolls, but they might need them in greater detail. As the CEO will need them, they should condense department-specific statistics.

Managing Risks

The finance department is also responsible for managing many financial risks in the business. For example, consider a European company. It imports raw materials from Japan and exports finished goods to the United States. In this case, the industry is subject to currency risk and changes in the value of the US dollar, the euro, and the Japanese yen. The finance department must manage this risk. This involves forecasting, analysis, and simulations. It also involves scenario-building. Finally, it involves deciding on the actual hedging strategy.

There are dozens of other risks to manage as well. For example, managing the credit risk of the company’s creditors. Having enough cash liquidity for day-to-day operations or contingencies. Also having backup credit lines set up in emergencies, and so on.

Coordinating With banks and Securing Capital

Depending on how the organisation is set up, the finance department may have to collaborate with many banks across the globe. A merger or acquisition and obtaining funds from the debt or equity markets are a few examples of bank-related operations. They are also overseeing foreign commerce and payments. They manage investments on the company’s behalf and oversee daily cash collections.

The finance department also coordinates with banks on these activities. It also falls to the finance department to cut the business’s cost of capital. They must negotiate the cheapest rates for borrowing. They must structure the company to maximise shareholder value.

Compliance

The finance department also manages regulatory and legal compliance. For example, it ensures fair tax laws are followed and complies with international sanctions.

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