owning machinery (Reh 2010).
A financial manager must have a keen understanding of numbers, but he or she must also understand his or her client. When suggesting sources of available funding, for example, the manager must remember some businesspersons wish to retain a high level of control over their organizations vision and decision-making. While venture capitalists can be a valuable source of financing, someone with high ethical standards might shy away from soliciting aid from someone who wishes a controlling interest in the business (Miller 2009). The regular nature of bank payments in exchange for financial independence might be a willing trade-off for someone beginning a new organic bakery, for example. However, a client proposing a very risky e-commerce venture might not be able to find adequate support from a bank at a sufficiently reasonable interest rate.
A financial manager can help the individual or organization balance goals, options, and dollars and cents. Also thinking out of the box for sources of funding, such as using smaller loans, or finding sources of government grants might be feasible in some instances.
Knowing when and if it is financially sensible to incorporate and sell shares to shareholders in terms of the risks of liability, ability to raise capital, and taxation law, is another decision that requires the astuteness of a financial advisor.
Large organizations frequently have a wide array of types of financial managers, from controllers who prepare financial reports, to treasurers who oversee investments; cash flow managers, to risk managers (Financial managers, 2010, BLS). At smaller organizations, or for individuals, these functions may be performed by the same individual in consort with the business owner or family. But whether the organization is small or large, the need for astute financial management cannot nor never should be discounted.
Financial managers. (2010). Bureau of Labor and Statistics (BLS). U.S. Department of Labor. Retrieved May 11, 2010 at http://www.bls.gov/oco/ocos010.htm
Miller, Miranda. (2009, August 4). 3 types of e-commerce start-up capital. Retrieved May 11,
2010 at http://ecommerce.suite101.com/article.cfm/3_types_of_ecommerce_startup_capital
Reh, F. John. (2010). Management 101. Retrieved May 11, 2010 at http://management.about.com/cs/generalmanagement/a/Management101.htm.