Function of Finance Manager

 Finance Manager is an important personnel of organization. They play an effective role to survive, grow and development of organization. They ensure every function, subfunction and action of organization perform by an economical way. Their main function is as below-

1. To forecast the requirements of organization- Every organization requires huge amount of finance to perform his function by effective and efficient way. It is the first function of Finance Manager to forecast accurate finance that is essential for the organization to perform it's function by proper way. 

2. To arrange finance- There are many ways to arrange finance. These ways are to take loan from financial institutions, to issue shares, bonds and Debenture. Every way has some positive and negative feature so it is the second function of Finance Manager to use and balance all methods for the development of organization. 

3. To balance capital structure- There are two types of capital organization possess. These are owned capital and borrowed capital. If owned capital is more and borrowed capital is less the development and growth of company became slow where's if borrowed capital is more company has to pay more interest so it is an important function of Finance Manager to balance owned capital and borrowed capital and ensure the growth and development of company by proper way. 

4. To balance cash flow Every organization gets money after selling the product and service whereas they expend money to purchase raw materials, labour charges etc. The income and expenditure of organization is called cash flow. Finance Manager ensures that cash flow ratio should be proper and in the favour of organization. 

5. To investment decision- The life of organization is very long so Finance Manager also invests his finance to care short term requirement and long term requirement. Short term investment is used for working capital whereas long term investment is used to purchase assets. So invest finance of organization is economical way is also an important function of Finance Manager. 

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