In an organization, finance manager is bestowed with the duty of ensuring that cash in an organization is collected and utilized efficiently. This implies that the officer is linked with the junior money collectors and intermediate money handlers in an organization to ensure there is the maximization of money income as well as minimization of money usage (Sabbagh, Raad, & Smayra, 2009). In organizational setup, finance manager works with cashiers, accountants and departments IE orders. These group of people forms the juniors who are answerable to the finance manager. On the same rank level, finance officer works hand in hand with deputy/ assistance finance officer to execute their duties efficiently. Nevertheless, finance officer is answerable to the chief financial officer as well as manager.
The simple channel of chief finance officer’s operation is that after receiving information from the cashiers and accountant they pass the same information to the management. To ensure a transparent circulation of organization's funds, finance officer makes sure that there is a constant check of financial systems regarding when money is received to when is finally used (Management Study Guide, n.d). For example, is a cashier receives a certain amount of money, the accountant ascertains the same amount. After that the records are passed to finance officer; thus, is reducing the risk of fraud and embezzlement of funds.
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Financial systems is are crucial in a company set up as seen in case of Nokia company. In 2011, the company laid off all its finance managers as a result of being seen as idle employees. The reason behind this was that the chain of finance having many stakeholders working with finance officer was insignificant. In 2013, the company was under receivership due to substantial monetary losses through fraud (GSMArena.com, 2015). At this point, the managing directors held crises meeting to solve the matter after which they ascertained that there was money leakage in the system. The resolution to this was to reinstate the position of finance managers.
From these instances, there is clear evidence that the role of finance manager cannot be underestimated in an institution. Failure to adhere to their calling can have disastrous impact on organizations. Just as in the case Nokia, it is essential to state and include them in the financial system of a firm.
References
GSMArena.com. (2015). The rise, dominance, and epic fall - a brief look at Nokia's history. Retrieved from https://www.gsmarena.com/the_rise_dominance_and_epic_fall__a_brief_look_at_nokias_history-blog-13460.php.
Management Study Guide (MSG). (n.d). Role of a Financial Manager. Financial Management . Retrieved from http://www.managementstudyguide.com/role-of-financial-manager.htm.
Sabbagh, K., Raad, R. & Smayra, C. (2009). The CFO as strategist: Leading value creation in the MENA region. Booz & Company. Retrieved from https://www.strategyand.pwc.com/media/file/Strategyand-CFO-as-Strategist.pdf.
