financialtreat – will explain about What is a Finance Manager and What Are Their Responsibilities? which you will find in the following article. let’s look at this article carefully!
Finance Manager is an individual who manages financial management, makes strategies, makes decisions, and applies them according to company goals. The purpose of the financial manager is to lead the finance division and make reports directly to the directors of the company.
Finance Manager is very important because the finance sector is the thing that has a big influence on the company because it involves the company’s income to be used in various business activities.
What is a Finance Manager and What Are Their Responsibilities?
Without money, the company will not be able to execute all of its business plans. The company’s financial management must be carefully regulated and the financial manager given the responsibility for it.
What are the Duties of a Finance Manager?
The financial manager has various duties related to the financial function within the company. Here’s the explanation.
1. Prepare the company’s general financial planning
The financial manager is in charge of preparing financial plans for company operations that are valid in one accounting period. Financial planning is adjusted to the needs and activities of the company in that period.
2. Cooperate with managers from other divisions
Finance managers need to work together with other managers to develop financial plans as needed. Each division must have its own budget. In addition, they must also cooperate in other matters related to company projects. It can be said that financial managers often hold meetings with other managers.
3. Execute the company’s financial needs efficiently
One of the goals of financial managers who prepare financial plans is for the company’s money to be used efficiently. Throughout the execution of the company’s operations, the financial manager will ensure that the money provided is used according to the plan.
If additional money is needed, the financial manager will not immediately provide the money, but must be reviewed carefully before making a decision.
4. Making decisions regarding company investment
Companies often invest in an instrument or cooperate with other companies to earn a profit. Investment decisions are made by financial managers who are able to assess whether the investment is good for the company’s future or not.
5. Linking companies to financial markets
The financial manager is also responsible for linking the company with financial markets to raise more funds. The financial market is a place for securities transactions. Financial managers usually know how to choose the best money market instruments for the company.
6. Advancing the company’s financial condition
The company’s financial condition must always be healthy, and continue to grow which indicates the company’s progress. The task of maintaining and developing the company’s financial condition is in the hands of the financial manager.
What Are the Responsibilities of a Financial Manager?
The responsibilities of a financial manager are many and involve the success of the company. This is the explanation.
1. Plan and manage the company’s financial budget
The finance manager is in charge of controlling the use of company funds as a whole in collaboration with other divisions. Controls are carried out so that the available funds are sufficient and do not require additional funds.
2. Prepare financial reports according to accounting guidelines
Assisted by accountants, financial managers make financial reports according to accounting rules that apply in Indonesia. The financial statements are made for one period and will be updated every year.
3. Ensure that financial transactions run in an orderly manner
The finance manager is also responsible for ensuring that financial transactions run smoothly and orderly, there are no transaction delays, and no theft of money that harms the company.
4. Manage corporate tax properly
One of the responsibilities of a financial manager is to manage corporate taxes in accordance with government regulations. Business taxes must be paid appropriately and recorded according to the format.
5. Control the company’s cash flow
The finance manager is also responsible for maintaining short-term financial functions, such as smooth cash flow and timely debt payments. The existence of cash flow has a big influence on the company’s operations.
What is the Salary of a Finance Manager?
The salary of a financial manager is high because of the big responsibility. In Indonesia, the salary starts from IDR 10 million to IDR 16 million per month. That doesn’t include bonuses either. You want to be a financial manager?
You can start by becoming a junior accountant first. When you consistently pursue a career in that field and have a lot of experience, you will be able to get the position.
Finance Manager Qualifications
Not just anyone who is able to become a financial manager because it takes a lot of experience and certain qualifications. These are the qualifications that a financial manager must have.
1. Minimum S1 graduate in finance
Financial managers are required to have an appropriate educational background in their field. Minimum S1 in a major related to finance. From that education, financial managers usually have broad and critical financial knowledge when dealing with financial problems in the company.
2. Experience in finance at least 2 years
To become a financial manager, a minimum of 2 years of experience in finance is required. It is undeniable that experience is something that makes a person more skilled and knows what he is doing.
3. Ages 30 to 40 years old
Financial managers in Indonesia have an average age of at least 30 to 40 years. At that age a person is considered to have sufficient experience and the most important thing is to have good emotional intelligence.
4. Able to lead a team
The financial manager must be able to be a reliable leader by the team. Only a few people can reach this position because of the difficulty of being a leader.
What is the difference between investing and financial management?
In addition, we will explain the difference between investment and financial management. Investment refers to a legal entity or a lay person who is an economic behavior that carries out an investment strategy.
Through the investment of certain funds and resources to obtain economic benefits from investment profits in the future. Investment can be divided into direct investment and insight investment, or by other names industrial investment and financial investment. In general, investment is a process of formation and movement of capital.
Financial management refers to the financing and use of funds. This is a kind of skill in managing finances as well as methods and means to maximize investment to the fullest.
The objects of financial management can be divided into national financial management, corporate financial management, and personal financial management. National financial management is macro financial management, which refers to financial operations methods and budget management skills.
Enterprise financial management is a middle-level financial management, refers to investment financing technology and financial management skills; personal financial management is microfinance management, refers to the family in investment financing techniques.
The idea: is to put money in certain channels or certain products to increase value or maintain value, to earn profits, related to the liquidity and profit of the fund.
Strategy decisions: In deciding an investment strategy, based on an assessment and understanding of market trends, the main consideration is the rate of return on profit.
Yield: The return on investment is to make a profit while realizing the protection and enhancement of assets, but also being able to bear certain losses due to the risk.
Scope: Individual or family investment channels look at various assets in financial markets, such as deposits, bonds, stocks, funds, foreign exchange, futures, and assets in food products, real estate, stamps, antiques, or industrial investments.
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Idea: Financial management is not about making money, but to help people manage income and expenses more sensibly, with the aim of achieving property security so that they don’t have to worry about property ownership.
Strategic decisions: In the process of designing and implementing financial plans, we must consider not only market situation factors, but also individual and family factors, including life goals, financial needs, assets and inflations, income and expenses, etc. Even consider personality traits, risk preferences, investment characteristics, health status, etc.
The result: Under the right financial expert planner, we will make our future life richer, better quality, and the family’s economic health is maintaine.
Scope: The content of financial management is much richer, including all aspects of personal and family income and expenses.
In short, financial management is a strategy that focuses on asset management, with complementarity, to achieve stable family financial development; investment is a strategic use, also the specific implementation of financial planning, that is, part of financial management.
That’s all the information related to financial managers. To achieve this position is not easy because it requires time, experience, and qualified knowledge. However, everything can be worke out as long as your intention is strong.