Planning to pursue the role of a finance manager or get promoted to the managerial position but unsure of the responsibilities? Well, we have got you covered in this regard. The objective of a finance manager is to bring financial management to an organization. A finance manager's job is to ensure that the business always has enough capital to keep it profitable.
They achieve this by effectively managing financial resources, and making informed decisions on capital allocation, risk management, and investment opportunities. Additionally, finance managers are responsible for financial planning, reporting, and compliance, as well as optimizing working capital, controlling costs, and providing strategic insights to support the company's growth and long-term sustainability.
Through these efforts, finance managers are crucial in driving financial stability and profitability while aligning financial strategies with overall business goals.
Finance Manager’s Roles And Responsibilities
Now that you have understood the function of a finance manager in an organization, it’s important to understand the roles and responsibilities of a finance manager’s position.
Finance Manager Responsibilities
Raising of funds
To meet the needs of the business, it is essential to have cash and liquidity so, that a firm can raise funds by way of equity or debt. A financial manager is responsible for maintaining the right balance between equity and debt.
Allocation of funds
After the funds are raised, the next important thing is to allocate the funds. The best possible manner of allocating the funds:
Size of the organizations and their growth capability
Status of assets about long-term or short-term
The mode by which the funds are raised
These types of financial decisions can, directly and indirectly, influence other activities.
Profit Planning
It is one of the primary functions of any business organization. Profit earning is essential for the survival and livelihood of any organization. Profits emerge due to various factors such as pricing, industry competition, state of the economy, mechanism of demand and supply, and cost and output.
Shares of a company are traded on the stock exchange for continuous sale and purchase. It is understood that the capital market is an essential factor for a financial manager. Hence, it is the responsibility of a concerned person to understand and calculate the risk involved in this trading of shares debts.
Role of a Financial Manager
The role of a financial manager is rapidly increasing due to advanced technology which has significantly reduced the amount of time that was occupied to produce financial reports.
They analyze market trends to find opportunities for expansion or for acquiring companies.
They have to do some tasks that are specific to their organization or industry
They manage company credit
Make some dividend pay-out decisions
Keep in touch with the stock market if the company is listed
Appreciate the financial performance concerning return investments
They maximize the wealth of company shareholders
To handle financial negotiations with banks and financial institutions
Types of Financial Managers
Controllers
They direct the preparation of financial reports that summarize and forecast the organization's financial information such as income statements, balance sheets, etc.
Treasures and finance officers: These officers direct their organization's budgets to meet its financial goals to oversee the investment of funds.
Credit Managers
They manage the organization's credit business.
Cash Managers
They monitor the flow of the cash that comes in and goes out of the company to meet the investment needs of an organization.
Risk Managers
They control financial risk by using strategies to limit the probability of a financial loss.
5 Tips To Follow Before Applying For A Finance Manager Role
Now that you have understood the finance manager’s role and responsibilities, it’s important to remember a few guidelines before applying for the position.
Review The Job Description
Before signing up for the role of a finance manager, it’s important to read the job description carefully. Every company would have different requirements in terms of skills required, educational qualifications, and roles and responsibilities of a finance manager. Tailor the resume according to the JD before sending in your application.
Showcase Relevant Experience In The Finance Manager Interview
Emphasize your experience in financial management, accounting, budgeting, and analysis. Highlight specific achievements, such as cost-saving initiatives, successful financial planning, or process improvements, to demonstrate your value and expertise.
Use Data Metrics To Show Achievements
It’s important to quantify your achievements and show how you optimized the budget to reduce costs by a certain percentage, increase revenue by a specific amount, or improve financial reporting accuracy.
Demonstrate Leadership and Communication Skills
Finance Managers often need strong leadership and communication skills to collaborate with cross-functional teams and present financial insights to non-finance stakeholders. Highlight instances where you've led teams, facilitated discussions, or effectively communicated complex financial information.
Highlight Relevant Software Proficiency
Familiarity with financial software and tools (e.g., Excel, financial modeling software, ERP systems) is crucial for a Finance Manager role. Mention your proficiency with these tools, including any certifications or training you've received.
As per Glassdoor, the finance manager’s salary in India is INR 15,50,000 on average. It completely depends on the company you are working for. We will share the salary trajectory for the finance manager role as per the experience.
0 - 5 years: INR 4,80,000
6 - 10 years: INR 9,33,000
11 - 15 years: INR 14,01,000
16 - 20 years: INR 17,00,000
20 years and above: INR 22,54,000 and above
In a nutshell, you have understood the career trajectory of a finance manager. If the roles and responsibilities of a finance manager interest you, you can register on Shine for free and apply for relevant job openings.
FAQs
Q1. What does a finance manager do?
A finance manager oversees an organization's finances, handling tasks like financial analysis, budgeting, and strategic planning to ensure optimal financial health.
Q2. How to answer ‘How do you handle budgeting?’
Here’s the sample answer:
I have a strong track record in creating accurate budgets by analyzing historical data, aligning with departmental goals, and actively tracking variances to make necessary adjustments.
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