Financial Management in BusinessThis essay delivers an overview of the role of the financial manager, in both the private and the public sector. Non-profit organizations are not specifically included in this discussion. A brief review of some standard mechanisms business managers use to monitor financial performance is followed by a larger discussion of the evolving role of financial and business managers, including cautionary notes to those new to the role.
Emphasis is placed on internal oversight and monitoring mechanisms; integral parts of effective business accounting which support the plans, methods, and procedures used to meet the company's goals and objectives. It will become readily apparent to the reader that financial reporting, using the traditional tools described herein, is clearly evolving into a more complex and integrated process, not unlike the globalization occurring in many industries. Integration of business processes in lockstep with financial administration is critical to maintain a competitive position in the marketplace. This article highlights the transformations in accountancy and internal practice seen in the marketplace today, and how these changes are bringing about an evolution of the role for those in key positions related to financial management.
