Role of Financial Manager

Role of Financial Manager Paper

Cynthia P. Franklin

FIN/554

William J. O'Connor, D.B.A.

March 9, 2005

Abstract

Role of the financial manager

The rold of financial manager has evolved over the time to perform with the unique needs of today's markets. New laws, rules, and guidelines have been implemented to increase the manager's awareness of accuracy and ethical behavior within the company or specific department(s). The Sarbanes-Oxley Act of 2002 (SOX) has been the primary driver for change.

The CFO of _______ ( , )states his position is a five c job. The five c's assist when making decisions, which allow him to focus on maximizing shareholder value ( , ):

* Count - preparing financial statements and verifying accuracy

* Control - implements stratgeic planning

* Create - create capital to increase value

* Counsel - guide employees and colleagues

with issues as they arise

* Contribute - be actively involved in the community to remain aware and in touch with what goes on around you

The role of financial manager is not generally assumed by one person in an organization. CEO's and CFO's are the most thought of; however controllers and treasurers are included in that role also. Controllers supervise accounting and auditing, while treasures oversee cash management. Purchasing managers also play a role as financial managers. Purchase orders must reflect correct general ledger codes which are used to compile financial reports. Assuring accuracy of reports maximizes shareholder value as valuable time is not wasted indentifying and correcting errors months later.

Ethical situations

Financial managers encounter situations