One of the innumerable duties of the financial manager within the company is to determine the price of the product or service, in order to ensure that production costs and profit margin are included in the final value to be charged
What distinguishes a thriving company from a company in constant economic crisis is its good management of available resources and its best suitability in the market in which it operates.
In order for the company to perform well, its budget and financial planning must be well done and this is one of the innumerable responsibilities of the financial manager within the enterprise.
The financial manager and his role within the company
As we mentioned, the budget as well as the financial plan is one of the paths that must be followed by the entrepreneur to make his company more prosperous.
However, although the entrepreneur needs to have a full knowledge of management and a good financial knowledge, he must delegate the function of elaborating the company budget as well as his financial plan to a professional specialized in the accounting area.
The budget and financial plan allow the entrepreneur to make better decisions with a view to the financial health of his enterprise, so it is so important that it be a document made by a professional you trust.
This professional is the so-called financial manager and among the innumerable responsibilities within the company, the preparation of the budget (physical and digital file that determines how much you enter and how much leaves a certain organization) and the financial plan (document with all accounting data and financial aspects of the enterprise as its budget, its cash flow, its balance sheet and in addition).
Still in doubt about the importance of this professional? We will bring below some more attributions of this professional and how their role becomes fundamental within your company.
The importance of having a manager in the company
The manager is responsible for the financial area of your company and is considered a professional of paramount importance to the prosperity of the business
All areas of a company are equally important for the whole to work well (the areas of marketing, people management, legal, etc.), but if we were to hierarchize them without doubt the financial would be among the most important areas since the maintenance of the enterprise depends on sound financial management.
From this perspective we can have an idea of the importance of the work of the manager since it acts directly in important aspects related to the financial sector. It is the responsibility of this professional to pay the company’s bills, balance the expenses (aiming to maintain the health of the enterprise), issue notes and reports.
One of the main secrets for you, as an entrepreneur, to enjoy all the advantages of having a manager in your company is to trust the hired professional. Since in order for your work to be effective, you must have access to all of the company’s information, from the most mundane to the most important.
If you hide any information requested by the professional, you will be curtailing your work, limiting the effectiveness of your work within the company. So trust the professional contract and if necessary invest a little more to have a really skilled professional given its importance to the prosperity of your business.
The financial manager should be able to make decisions within the company, being considered as a slightly autonomous professional (therefore, trust between you and the professional should be one of the fundamental points in the process of selecting the professional to be incorporated into the team of your company).
Other duties that the manager can assume
The financial manager, as the name suggests, is responsible for the financial sector of your company, however, thinking about your performance only limited to “financial sector management” may end up making your actions abstract for anyone unfamiliar with this important professional. See below for other possible interventions of this professional:
Do not know if the price charged for your product is in accordance with your production expenses, profit margin and in addition? The financial manager can help you in this task. Determining three variables to effectively determine what the best price to charge for said product.
In order for your manager to determine the amount to be charged for your product, it must take into account the costs for its production, its market demand and direct and indirect competition.
Determine the direction of the enterprise
The financial manager as an autonomous professional within his / her business may decide ways to be adopted by the company aiming at its economic stability and its better performance.
The manager can determine the cost cutting and the implementation of new strategies of action aimed at the target public of your product, or service.
Market analysis is usually done before the start of the business and basically determines your strengths, weaknesses, opportunities and threats.
When you have a financial manager working in the company, this market analysis is customarily redone trying to identify potential new strengths or weaknesses as well as new opportunities and threats. Still, it is the attribution of the manager in the market assessment, determine the possible growth of the company based on data about its market and its actions, as well as the possibility of exploring a new niche market.