As we know that the finance department plays a vital role in every organization and ensures that the organization has enough resources and liquidity to meet its legal obligations as well as facilitate its shareholders. The primary goal of the finance manager is to ensure that his company has adequate supply of capital and sufficient statutory reserves. The ultimate goal of every organization is the same "to increase the surplus". But the question is; how the finance manager becomes the part of the success story and how they can maximize the value of their organization
The financial manager or the chief financial officer (CFO) is responsible for financing the enterprise and acts as an intermediary between the financial system's institution and markets. While on the other hand, the business manager is responsible for a different kind of work like investing in plants and equipments, undertake research, hire staff and sell the firm's product. Major financial decisions made by the managers of a business are either investment decisions or financing decisions. In investment decisions, managers consider the amount invested in the assets of the business and the composition of that investment. Investment in assets are more beneficial because it produces cash flows for the entity that are needed to meet the operating expenses, pay interest to lenders and taxes to government. In addition to the amount and composition of investment, managers have to decide how to finance them; it pertains to the financing decision which involves generating funds internally or from sources external to the business. Dividend decisions also affect the financing decisions (Bossaerts, 2006).
Successful companies have skilled people at all levels inside the company, including (1) leaders who develop and articulate sound strategic visions; (2) managers who make value-adding decisions, design efficient business processes, and train and motivate work forces and (3) a capable work force willing to implement the company's strategies and tactics. Before going