Question

if a firm is facing financial problems, then explain whether role of firm's treasurer or controller is important and how?

Answer 1

Answer:-

There are lot of financial problems which can occur in a firm. The main problem in financial policies is the use of fund. The main responsibility of doing the financial function is with top managements. The Board of Directors appoint the financial committee to review and formulate the financial policies. Controller and Treasurer are two officials or financial managers under the Chief Financial Officer. The main finance functions of a firm is Accounting and Control and Treasury Management.  Financial Controller is a person who monitors whether the funds are properly utilized. The treasurer raise the fund and manage the funds.

The Controller act as the Cheif accountant of the firm. The Controller performs the financial function such as financial forecasting, preparing the financial statement and analyses, budgeting, establish and administer tax policies and internal audit etc.

The Treasures serves as the risk managers in which they help to protect company's value from financial risk. The Treasurer is concerned with routine works such as administering the flow of cash, managing credit, collection of credit sales, risk management, maintaining relationship with financial institutions etc.  

The functions of financial controller are:-

• Financial controller make a plan to control of operation. This plan will help in profit planning,sales forecast etc.
• Controller supervises in preparation of report that want to give to government officials.
• The controller assess the protection of business assets through internal audit and control.

The functions of Treasurers are:-

• Helps to provide finance that is required by the business.
• Treasurer arrange short term financing from money market.
• Treasurer provide insurance coverage.