Top Duties and Responsibilities of Finance Officer — Indian Apex

4 min readNov 14, 2021

Finance is extremely vital in any corporate organization, as we all know.

It is highly crucial to decide where, in what quantity, and how to allocate and use the money received by the organization, and for this reason, only a particular person is hired to perform this function in the firm, known as the Finance Manager.

A finance manager is someone who is one of the most responsible people for any kind of organization.

He is solely responsible for deciding how to manage money in a particular working organization.

Based on the finance function, the various duties and responsibilities of the finance officer of any firm or organization have been divided into the main 2 parts.

(1) Recurring Duties and

(2) Non-Recurring Duties

So, basically in this article, we’re going to discuss deeply the top Duties and Responsibilities of a Finance Officer. If you want to know more about the same, kindly read this article until the end.

Duties and Responsibilities of Finance Manager

(1) To Decide the Financial Needs

Whether the organization is new or old, it will need money to operate its operations successfully, which is why it is critical for the finance manager to grasp the financial demands of any firm, especially when it is relatively new.

The primary responsibility of any finance manager in a newly established or expanding business is to prepare the company’s financial strategy. The amount of money needed and how long it will take are determined in advance by a financial plan.

The funds may be needed by the company for the initial promotion expenditure, fixed capital, working capital, or dividend distribution. The finance manager should allocate the funds properly in order to run the business entity’s operation very smoothly.

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(2) Raising the Funds Required

Like we have already told you that any business needs a lot of money to manage its working operation. In such a situation, a finance manager sometimes also has to work to raise funds to manage the business of the company.

The finance manager usually arranges finance for the company by issuing shares, selling dentures, or taking loans from any financial institution so that the business can run very smoothly.

Before raising money for the business of a finance manager, one thing always has to be kept in mind that how much money is to be raised and when and what percentage of that borrowed money has to be returned with interest and usually this decision is considered as one of the most important businesses for any organization.

The finance manager may have to keep in mind the basic three principles of cost, risk, and control. If the company decides to go in for the issue of securities say in the form of shares and debentures, he has to arrange for the underwriting or listing of the same. If the company decides to go in for borrowed capital, he has to negotiate with the lenders of the funds.

(3) Allocation of Funds

The most important role of a finance manager is that he has to decide that where and how much allocation of the funds should be done in the company.

It becomes very important for any company to decide how much money to invest in its fixed assets and how much money to save for its working operations and at that time the finance manager plays a very important role because he decides the exact proportion of both of these points with his extraordinary knowledge.

Suppose that if a company is investing a lot of money in its fixed assets, then that finance manager has to take care of this investment as he has to assume how much money the company can earn from that fixed investment in the nearby future with ease.

Suppose if the company does such a thing that it wants to invest more money in their working operations, then the finance manager also has to keep in mind that the company should have successful cash at that time in order to run the business operations smoothly.

(4) Dividend Related Decision

As we all know, when a company earns, it divides a portion of its profits among its shareholders.

Whether distribute or not to distribute a dividend to the company’s shareholders, and if so then how much to distribute then usually this decision is actually made by the company’s directors after consulting with the finance manager, and for this reason, the role of finance manager has a very important role in company’s dividend decision making criteria.

A finance manager is someone who actually decides how much proportion of the company should be retained as earnings and how much should be divided as dividends as he has the best ideas related to the financial conditions of that particular company.

Final Conclusion on Top Duties and Responsibilities of Finance Officer

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Originally published at https://indianapex.in on November 14, 2021.