FUNCTIONS OF FINANCIAL

MANAGEMENT
Presented By:
Virma Paz Eclar
MBA Student - Taguig City Univercity

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Learning Objectives
After studying we should be able to:

1. Describe the role of Finance Manager in

achieving the primary goal of the firm.
2. Understand how finance fits in the
organizational structure of the firm.
3. Enumerate the fundamental activities of
the Treasurer and the Controller
4. Explain how the Finance function
relates to the other functional areas of a
business
5. Learn the importance of corporate
governance in achieving the goals of a
business organization.
6. Appreciate the importance of ethics in
finance.
Role of Finance
Manager
 Financial Manager Makes Decisions Involving

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Impact
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financial manager’s
Affect the Market Price
role in achieving the of Common Stock
primary goal of the
firm.
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Lead to
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 Types of Financial Manager
The top Financial Manager within a firm is usually the Chief Financial Officer (CFO)

1. Treasurer 2. Controller
Oversees cash management, credit management, capital Oversees taxes, cost accounting, financial accounting and
expenditure and financial panning. data processing.
The Finance
Organization
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Organizational Your Text Here

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Relationship with
other functional
Managers in the
organization
The Relation of Finance to Other Business Function
Establishment - Financing is what
enables the purchase of the equipment,
the leasing of the property, the buying of
materials, employee’s salaries, marketing,
etc.
Production in Anticipation of
Demand - Financing enables
production in anticipation of
demand. This is a necessary
aspect of many businesses.
Promotion - Financing is required to fund
promotion. A business will not get many
customers if it does not advertise its
presence, its product/service offerings and
its value proposition (e.g. low price, great
value, special features).
Opportunities - financing enables
opportunities, which can arise at any time.
Without financing, a company cannot take
advantage of those opportunities.
Contingencies - Adequate financing
also ensures that the company will be
able to handle any contingencies that
arise. A contingency is any sort of
unexpected expense.
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Growth - Without having advance orders and
payment, growth would not be a possibility
without financing.
Corporate
Governance
Corporate Your Text Here
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Monitors Your Text Here

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Ethical Behavior
Ethics are of primary importance in any
practice of finance.

Finance professionals commonly

manage other people’s money.
Thank You
References:

• https://smallbusiness.chron.com/relation-finance-other-business-functions-4103.html
• Financial Management Principles and Applications Vol. 1 by Ma. Elenita Balabat
Cabrera – BBA MBA CPA CMA