Having planned the future cash flow of cash receipts and having raised any needed funds, the financial manager must then see to it that the funds are invested wisely within the business. This function is often referred to as asset management. He will try to get as much out of the funds invested in the various assets. As far as capital investment projects are concerned, he must ensure that he will invest only in projects which will yield an acceptable rate of return. If he can choose between alternatives, he must choose that one which will help maximise shareholder's wealth.
Very likely he will also be responsible for the credit policy, and for supervision of collections from debtors, and excessive and slow-moving stock are undesirable and wasteful. He must ensure that his internal control system is adequate and functional. This working capital management is a very important part of the financial manager's duties, and most of his time is typically spent on it.
In addition to the above, we will find the financial manager involved in other areas, which have financial significance or implications.
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