Financial Managers and Accountants
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The roles of financial manager and accountant are comparable in some ways and often times they work together on several projects. The financial manager and the accountant are very important resources for each other, making available information that the other needs, and also working together to make informed decisions, mostly about investment opportunities and the daily operations of the organization. “However, the main difference between the financial manager and the accountant lies in the word comprehensive” (Ewton, 2006). The accountant is required to follow the rule book to exactness when dealing in the organizations financial matters and the financial manager is allowed to take risks when deciding on investment opportunities for the organization.
The role of an accountant is to make sure that the organization is run cost-effectively. This includes maintaining accurate business records, and accurately paying the business taxes on time. “The accountant evaluates records and shows the results of this investigation as losses, gains, leakages, economies, or changes in values, so as to reveal the progress or failures of a business and its future limitations and possibilities” (Encyclopedia.com, 2006). The accountant must be
Financial Managers and Accountants
able to assemble a set of financial records and recommend the usage of accounts that will present the best information. Also, an accountant must be able to provide a complete description of the economic and the legal position of a business, and predict the outcome of transactions on the profit-and-loss statement.
The role of the financial manager in the present day business world is continuously changing to keep up with different industries and organizations. “A financial manager [needs] to understand the financial health of a company, the current market, and the companys goals, helps to measure a companys value and its risks while also helping to systematically reduce its costs and the time necessary to make informed decisions regarding objective driven operations” (Olley, 2006). Moreover, financial managers are responsible for managing assets and cash to maximize the shareholders value and profits. Nearly every firm, government agency, and other type of organization utilizes financial managers, and depending on the type of organization, financial managers can have different titles, such as controller, finance officer, credit manager, cash manager, and risk and insurance manager.
The role of maximizing shareholder value is one that
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can be mutual for the financial manager and the accountant; both positions should be attentive to and concerned with