Financial Management Essay

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Recommended: How is the role of the financial manager to the financial market and financial factors

A financial manager is responsible for budgeting, projecting cash flows, and determining how to invest and finance project (Boundless, 2014). They are responsible for knowing how much the product or project is expected to cost and how much revenue it is expected to earn so that the company can invest the appropriate amount in the product or project (Boundless, 2014). Financial managers take on various roles and positions while continuing to carry out their main job responsibilities.
Financial managers typically start by earning a bachelor’s degree in accounting, business administration, economics, or finance. Many also earn a master’s degree in business administration, economics, or finance. There are usually certifications and licensures that are recommended or required within the financial management field (Money.usnews.com, 2014). Financial managers usually start out in entry-level positions at large organizations or banks. Those who stand out move up in the company and become managers where they take on more responsibilities and financial oversight duties (Money.usnews.com, 2014). While in a management position, financial managers must be very flexible and must be able to easily adapt to rapid, frequent changes that may occur in the workplace.
Financial managers must have the ability to conform to the ways of the company they’re working for and find a way to create values for their employees. In 2004, the average work week of a financial executive was 52 hours and rising, and nearly two-thirds of those surveyed said that the strain from their work was affective their health (Witzel, 2006). It is important for financial managers to not be overworked, because at some point, they become so exhausted from working and thinking...

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...curate financial data for the future. Without financial data for the future, financial managers use data analyses and educated guesses to approximate the value and costs (Boundless, 2014). Financial managers must set the cost of capital, the cost of money over time, for their company to determine to cost of financing projects (Boundless, 2014). While performing all these roles, financial managers must also ensure that the business has enough money available to pay for upcoming financial obligations without hoarding assets that could otherwise be invested (F2.washington.edu, 2014). The roles of financial managers are lengthy and complex and require numerous hours of work on a daily basis. Not only do financial managers have to carry out their daily roles, but they also have to be prepared for random assignments or activities that can pop up in a company at any time.

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