The financial manager has now become an integral part of the business enterprise and is involved in all the activities that take place in the enterprise.
Today . his responsibility is not limited to the procurement of funds but extends beyond. it ensures its optimal utilization. He plays a pivotal role in planning quantum and pattern of fund requirement procuring the desired amount of funds, allocating funds so pooled among profitable outlets, and controlling the uses of funds.
Since, all the business activities like marketing, purchase, and production involve cash planning and utilization or generation of funds., the finance manager must take cognizance of his involvement in all the activities of the firm. He must also have a clear conception of the overall objectives of his firm as he has to act in conformity with the objectives.
Furthermore, he has to evaluate the effectiveness of financial decisions in the light of some standard .objective of the firm provides such standard.