Financial management is crucial to effectively oversee organizational operations because the process facilitates the monitoring and evaluation of corporate activities and budgets. Corporations have a constant cash flow, and the maximization of the resource requires the implementation of measures that guide finance allocation. Hence, the financial management cycle offers organizations the opportunity to control the financial resources at their disposal through planning and budgeting, resource allocation, operating, monitoring and safeguarding as well as evaluating and reporting (Barr & McClellan, 2018). Thus, organizational financial success is heavily reliant on the management of monetary resources.
Managers spearhead all activities associated with overseeing resource handling within organizations. In a financial management capacity, a manager’s role in supporting the financial management cycle encompasses the collection and submission of organizational, economic forecasts coupled with the provision of advice on the most appropriate commercial approach a business should adopt. Additionally, a financial manager should provide budgetary details for the institution they work for to guide the relevant parties on the crucial aspects of monetary allocation involved. Also, their budgetary control role entails reviewing financial reports at least once a month and raising any issues that require resolution (Azam & Abdullah, 2015). Therefore, the role of financial managers within institutions should align with the phases of the financial management cycle to maximize efficiency.
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Over a year, the touchpoints that must be factored in to assess the effectiveness of a financial manager include the evaluation of customer satisfaction levels. An organization’s client base is essential because it keeps the company relevant and operational. Thus, the economic measures taken to manage corporate monetary resources must align with consumer needs, to keep an organization’s clientele satisfied. Moreover, the effectiveness of a financial manager may be assessed based on the measure of the return on investment (ROI) associated with the delivery of excellent customer experience. The financial decisions made in an organization must be oriented to creating a satisfactory customer experience, without which the ROI cannot be maximized (Homburg, Jozić & Kuehnl, 2017). Hence the successful management of finances in a corporation requires the alignment of the role of the financial manager with the phases of the financial management cycle and the needs of customers to maximize the benefits associated with proper resource allocation.
References
Azam, S. F., & Abdullah, M. A. (2015). Differential Roles between Owner and Manager in Financial Practice That Contributes to Business Success: An Analysis On Malaysian Small Business. Academic Journal of Interdisciplinary Studies , 4 (1 S2), 123.
Barr, M. J., & McClellan, G. S. (2018). Budgets and financial management in higher education . John Wiley & Sons.
Homburg, C., Jozić, D., & Kuehnl, C. (2017). Customer experience management: toward implementing an evolving marketing concept. Journal of the Academy of Marketing Science , 45 (3), 377-401.
