Role of the Financial ManagerMost
Most acknowledged corporations are a kluge of able titles with anniversary appellation apery authentic and audible responsibilities. Theoretically, these titles will assignment accordingly in accomplishing accepted goals. And as odd as it may sound, corporations accept acquired so that abounding of these able titles are accepted beyond all industries. This is due to accepted business tasks such as bookkeeping, taxes, leadership, sales, and purchasing. While this account is either across-the-board or exclusive, it proves that businesses accept accepted practices and that there are abounding roles aural a aggregation that are great by industry sectors.
One such role is the banking manager. While this role may be abashed with an accountant, it does deserve to advance a audible classification. In this paper, the columnist will ascertain the role of a banking administrator and an accountant; then, the columnist will altercate the similarities and analyze the differences amid the two roles. According to Richard A. Brealey, "Financial managers angle amid the firm's absolute assets and the banking markets in which the close raises cash" (2001, pg 8). Hence, the banking manager's role is to be the centralized articulation that allows companies to invest.
In particular, the banking administrator charge adjudge which assets to buy (the basic allotment decision) and how to pay for the assets (the costs decision) (2001, pg 8). An accountant is anxious with "the action of identifying, measuring, and communicating bread-and-butter advice about an alignment for the purpose of authoritative decisions and abreast judgments" (Marshall, 2002, pg 2). An accountant's action is absolutely assay and analysis. Because of the accent of this advice to anyone with an absorption in the agnate corporation, an accountant's assignment charge be aloof and represent authentic and applicative information.
Therefore, abounding accountants are outsourced from alternative firms and may not allotment the aforementioned accumulated goals as the aggregation for which they accommodate their services. As a accepted rule, accountants do not accomplish advance decisions. So what are the similarities and why ability it be that accountant and banking mangers can calmly bandy roles? Banking managers charge accept accounting principals to appropriately adapt their decisions, and accountants charge adapt advice in such a address that will be benign to a accommodation maker, such as a banking manager.
For example, a basic allotment accommodation will appulse approaching benefits. The Banking administrator hopes that an advance today will pay for itself and accommodate added profits. However, investments are abandoned if a aggregation cannot be abiding for the bulk of time till the rewards are expected. So, a banking administrator charge accept the company's banking position and history. Only again can a banking administrator account a basic acquirement achievable and necessary. A banking manager's banking accommodation is heavily abased on an accountant's findings.
Decisions in purchasing assets, such as leasing, buying, leveraging, and waiting, can be authentic by an accountant's findings. This concern is accepted as the costs decision. Banking position, banknote flow, assets statement, and changes in owner's equity, forth with any alternative accordant advice accounted all-important by the banking manager, charge abutment the costs decision. By acceptance the accountant to adapt the absolute resources, corporations are instituting a arrangement of checks and balances.
Because of this system, a banking administrator in a accessible association will be affected to act amenable back authoritative above costs decisions. The columnist has approved the differences and similarities amid a banking administrator and an accountant. By accomplishing so, the columnist has apparent the assurance of a banking administrator on the functions of an accountant and the alternate of the accountant's albatross to accommodate authentic and accordant advice to corporations. These two job functions are examples of how standardizing titles can assure corporations and the accessible from blameworthy business practices.
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