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 which pose ethical dilemmas. Some decisions to maximize shareholder values may be perfectly legal; however the end result may not be ethical. One way to maximize shareholder value is to cut costs. Terminating necessary employees to increase value is unethical. The company should look to restructure and
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 which pose ethical dilemmas. Some decisions to maximize shareholder values may be perfectly legal; however the end result may not be ethical. One way to maximize shareholder value is to cut costs. Terminating necessary employees to increase value is unethical. The company should look to restructure and