What is the primary role of a principal in finance?

The primary role of a principal in finance is to oversee the financial operations of an entity. Principals typically hold senior management positions, where their responsibilities include setting financial strategies, ensuring compliance with financial regulations, and managing financial performance. This encompasses a broad range of activities such as budgeting, forecasting, financial reporting, and risk management.

Understanding the importance of this role helps emphasize the significance of effective financial oversight in achieving a company's long-term success. By guiding financial operations, principals ensure that resources are allocated efficiently and that the organization is on solid financial ground, ultimately benefiting all stakeholders involved.