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Pros And Cons Of Financial Managers

Updated: Apr 16

Author: Rianna

Publication date: 27.03.2024

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Financial managers ensure that companies are as successful as possible and compliant with financial and legal guidelines. In this article, I will discuss the pros and cons of financial managers.

What is a Financial Manager ?

Financial managers are responsible for keeping an eye on the company’s finances. In their teams, they create financial reports, cash-flow statements and profit projections and also help the other members of the company in interpreting these financial findings. Financial managers generally have to be able to look long-term in order to utilise the company’s funds as efficiently as possible.

There are various types of financial managers that exist within a company. These include:

●      Risk and insurance managers: Both minimise risk using different methods. Risk managers minimise external risks that will threaten operation, e.g natural disasters and also use different means to help companies benefit from fluctuating commodity or foreign currency prices. Insurance managers will buy insurance policies that will protect the business by minimising risk from lawsuits.

●      Controllers: Controllers are generally found in the accounting, budget and auditing departments. They ensure the financial statements are accurately completed and sometimes may prepare statements for governmental or regulatory authorities that summarise the company’s financial position.

●      Treasury and finance officers: Manage budgets and adjust them where necessary. They also coordinate investment funds and mergers.

●   Chief Financial Officer (CFO): The highest level manager that is essentially responsible for ensuring accuracy of all the financial reporting. They’re generally one of the high-earners in a company.

Pros of Financial Managers

●      Better decision making: Financial managers record all financial transactions and deals and then available figures to help companies be more in control of decision-making.

●      Better control: The budgets that financial managers create ensure business activities don’t exceed specified spending costs.

●      Transparency: Information is recorded systematically and creates space for more comprehensive data that makes financial matters clearer and less complex.

●      Better and up-to-date compliance: Financial managers always stay up-to-date with changing tax and accounting standards, thus saving company’s from expensive mistakes. They also ensure legal compliance and will make companies aware of how any changes in laws or legal guidelines will affect operations.

●      Room for specialisation: Financial managers are able to expand their expertise by specialising in various areas.

Cons of Financial Managers

●      Complex: Financial managers are in charge of very difficult tasks which aren’t limited to checking and analysing market trends and keeping up with changing guidelines in order to comply with government authorities.

●      Expensive to hire: Financial managers are generally costly to hire due to the complexity of their work in addition to the costs of their time and their service fees, e.g transaction fees and consulting fees.


Financial managers check on the company’s finances and create various financial reports that they help the other members of the company to interpret. The different types of financial managers like CFOS, risk and insurance managers,controllers as well as treasury and financial officers. The pros of financial managers include the ability of financial managers to specialise, better compliance, transparency and better control of finances. Cons are few and include complex work and expensive hiring costs.

In light of the crucial role of financial managers, individuals aiming to secure their financial futures may find platforms like Binance an accessible avenue to explore investment opportunities and grow their wealth through strategic allocation and management of assets.


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