Briefly explain the three key activities of the financial manager?

1) Providing /interpreting financial information and advising management for timely decisions

2) Conducting review and evaluation for cost reduction opportunities.

3) Supervising accounts/finance staff, co-ordinate with inter departments for routine work.

There are three main activities facing the financial manager:

          *   investment decisions- these are decisions which determine how resources in terms of funds are available are committed to projects, which can range from acquisition of plant to acquisition of anther entity. They involve trade offs between cash flows in different time frames, typically an outlay now, in the expectation of an outflow in a later years.

          *   Financing decisions- which involve acquiring optimum finance to meet financial objectives and seeing that fixed and working capital are effectively managed. Financing decisions relate also to the capital structure of the enterprise, namely how much capital it needs and sources from which it is obtained- from borrowing to equity.

          *    Dividend decisions- relate to the determination as to how much and how frequently cash can be paid out of profits of an entity as incomes for its proprietors. The owner of any profit making enterprise looks for reward for his investment in two ways : the growth of the capital invested and the cash paid out as income or dividend.

          The dividend decision thus has two elements, the amount to be paid out as dividend and the amount to be retained to support the growth of the entity. Dividends represent the transfer of cash from the beneficial ownership of the company to the beneficial ownership of the shareholders.

Mainly Financial Manager have to work on 'AAA' Model.

A: Anticipate, Analysis on funds utilization.

A: Acquire the Required Funds By Using different financial Sources.

A: Allocate those funds as per the ranking or priority with the analysis of different criteria's.

Thanks & Regards

Muhammad Munam 

In simple words the three key activities of the financial manager is to:

Plan,analyze and develop financial strategies for the company. - Supervises and manages all aspects of the accounts department.