1.1 The main functions of financial managers are (1) to raise funds from external financial sources, (2) to allocate funds among different uses, (3) to manage the flow of funds involved in the operation of the enterprise, and (4) to provide for returns to investors and other sources of financing of the firm. In short, the main functions of financial managers are to plan for, acquire, and utilize funds to make the maximum contribution to the efficient operation of an organization.