Q. Graphic Presentation of Organisation of Finance Function?

Graphic Presentation of Organisation of Finance Function: - The following chart describes the organization of the finance function of a large business firm:

Functions of Financial Manager: - The financial manager is a associate of top management. He is intimately associated with the formulation of financial policies as well as financial decision making. He is expected to carry out the following functions:

(1) Financial Planning: - The financial manager approximation the financial needs of the business and determines the capital structure and prepares financial plan.

(2) Procurement of Funds: - He arranges to obtain the funds from various sources such as shares and debentures etc.

(3) Coordination: - He sustains a proper coordination among the financial needs of different departments.

(4) Control: - He ascertains the standards of financial performance and examines whether the actual performance is according to predetermined standards. He is accountable for:

• Controlling the Costs
• Analysing the Profits
• Preparation of Reports

(5) Business Forecasting: - He keeps continues watch on the various events affecting the organization such as:

• Technological Changes
• Competition
• Change in Govt. Policy
• Change in social and business environment and studies their effect on the firm.

(6) Other Functions: Other functions we comprise:

• Cash Management
• Banking Relations
• Credit Management
• Assets Management
• Securities Management
• Accounting
• Internal Auditing