Considering the statement of financial position, identify and briefly explain the key activities of the financial manager?
The key activities of the financial manager as evidenced in the statement of financial position include:
1. Financial planning and analysis: Financial managers are responsible for creating and analyzing financial plans, budgets, and forecasts to ensure the company's financial health and sustainability.
2. Cash flow management: Financial managers oversee the company's cash flow to ensure that there is enough liquidity to meet financial obligations and fund operations.
3. Capital investment decisions: Financial managers are involved in evaluating and making decisions regarding capital investments, such as purchasing new equipment or expanding operations, to ensure maximum return on investment.
4. Risk management: Financial managers develop and implement risk management strategies to protect the company from financial risks, such as market volatility, currency fluctuations, and interest rate changes.
5. Financial reporting: Financial managers are responsible for preparing financial reports, such as the statement of financial position, income statement, and cash flow statement, to communicate the company's financial health to stakeholders.
6. Compliance and regulatory requirements: Financial managers ensure that the company complies with all financial regulations and reporting requirements set by regulatory bodies and government agencies.
Overall, the key activities of the financial manager involve managing finances, making strategic financial decisions, mitigating risks, and ensuring compliance with financial regulations to drive the company's success and growth.