Best Decisions of Financial Manager 

 A financial manager takes financial decisions focusing on the liquidity and profitability of the firm and executes the decisions. The financial manager takes decisions about all matters related to finance, investment, and profit earned from the invested money.


The functions of a financial manager in a large organization are:

1. Chief Financial Officer:
Involved in the financial functions of the organization i.e. treasurer, controller, formulation of financial policy and plan, etc.

2. Controller:
Responsibilities of the financial controller include the preparation of cost accounts, budget formulation, preparation of financial statements, preparation of forecasts, internal control, etc.

3. Treasurer:
Financial Treasurer's responsibilities are capital budgeting, pension management, commercial banking, investment banking, cash management, debt management, etc. involved in financial decision-making.


All the decisions that financial managers make to run financial institutions are called financial decisions. Financial decisions and finances The manager's decision is not the same. The financial manager's decisions are:


1. Financial decision:
The financial manager makes all the decisions regarding where to raise money for his business. It can be borrowed money or it can be money from owners or shareholders. The financial manager has to decide what is profitable for the organization.

2. Investment Decision:
The manager has to invest the accumulated capital, and fixed and current assets. Investment in current assets is essential to keep fixed assets operational. There are 2 decisions to keep in mind when investing in real estate. 1. Capital budgeting decisions, 2. Capital rationing decisions.

3. Dividend Decision:
The last important decision of the financial manager is the dividend policy decision. The financial manager has to decide how much of the profit will be distributed among the shareholders and how much will be retained. Again, after the dividend declaration, a decision has to be made on whether to take a cash dividend or a stock dividend.