A business financial manager assists a company in making sound financial decisions. This could include assisting a company in developing business plans and goals for asset allocation. It can also entail assisting a company in meeting accounting requirements, identifying areas of excessive spending and costs, and determining which areas are profitable and should be exploited.
A degree in finance, accounting, economics, statistics, or a related field is typically required of a business financial manager. Business financial managers frequently enroll in an advanced degree program, such as an MBA program. They learn how to read balance sheets, the generally accepted accounting principles (GAAP), and other useful information such as the stages of a product life cycle and how to calculate profit/loss on a given product or project during their academic careers.
After completing his education and entering the workforce, a business financial manager will typically collaborate with the company’s executives and managers to gain a comprehensive understanding of the company’s financial picture and goals. He may also communicate with the accounting and/or accounts receivable departments in order to gain a better understanding of the company’s financial situation and profitability.
A business financial manager’s responsibilities may include assisting a company in developing a business plan or prospectus, either for the company as a whole or for a specific project or series of projects. In such cases, the company will lay out the objectives and goals of a specific project. The financial information related to that proposed project or endeavor will be filled in by the business financial manager so that investors or banks can get an idea of how the project’s finances will work.
Some business finance managers are responsible for managing the company’s assets, such as signing checks and authorizing other expenditures. Others simply offer advice on how to spend money and where it should be allocated or saved. The specific role and function a manager plays in managing a company’s finances is determined by the size of the company and the amount of money it has on hand.
Some businesses will hire a full-time business finance manager to manage their accounts and provide financial advice. Others will use management consulting firms or financial advisers who work on a consulting basis to outsource their work. Outsourcing this task to a third party can be a cost-effective way for small businesses to save money.