A financial manager is someone who takes responsibility for a company's finances and monitors all financial issues within that company or organization. They work as advisers and give the best ideas to make a business financially successful. A wide range of institutions hires financial managers including Insurance companies, supermarkets, health authorities, industrial organizations, IT companies, etc. Ultimately it is a very big responsibility that requires some serious dedication, continuous attention, analytical thinking ability and so much more. So, if you're thinking about making a career choice in this field then here is what you'll need to know:
Responsibility: A financial manager has to fulfill the following responsibility.
- Evolve strategies for the best profits.
- Give reports on the financial outcome.
- Develop and idealize long term financial goals.
- Monitor investment activities.
- Developing a solution to minimize cost.
- Supervise employees who do budgeting and financial reporting.
- To ensure if all legal requirements are met.
- Take financial decisions.
- Prepare or analyze income statements.
- Analyze past performances and future expenses.
- Give cash flow statements.
- Analyzing future trends and take decisions accordingly.
- Coming up with a way that minimizes financial risks.
- Managing and keeping track of budgets.
These are the typical responsibilities of a financial manager. Though previously their main role was on business, currently due to the improvement of modern technologies, this pattern has changed. Now they mainly play a role as data analyst and advisers of senior executives on how to maximize profits. The responsibility usually varies with the size and type of the organization (public, private, commercial, educational). For example, Government financial managers are responsible for budgeting, risks managers calculate the probability of financial losses and thus the responsibility varies within organizations.
Career requirements: Follow the pattern of order to pursue your career in this field.
- Step 1- Earn a bachelor's degree: The minimum requirement is to earn a bachelor's degree in finance, business, economics, accounting or any of the related subjects.
- Step 2- Earn a master's degree: A master's degree in finance, management, accounting, business or any of the related subjects will give you a partial advantage as many companies require it.
- Step 3- Achieve work experience: Most of the high paid financial manager posts require 5 years work experience as either one of these: loan officer/ accountant/ auditor/ financial analyst/ experience in any other related sectors. Work experiences improve and regulates critical thinking ability and serve as a priority during employee selection.
- Step 4- Post graduation: Sometimes a post-graduate degree may also play a positive role during the candidate selection process and earning promotion. But it is not essential primarily.
Skills: A financial manager has to have the following skills.
- Analytical skills: Financial managers assist senior executives in serious decision making which is a very important task as it will affect the organization. That is why financial managers require a strong analytical ability to give the best advice.
- Communication and Presentation skills: Financial managers have to explain and justify their complex transitions which require this quality. Besides, they should have the negotiating quality and the ability to manipulate, lead and guide other employees. Working as a team and building up strong working relationships is a challenge for the financial manager. But all these problems can be solved with good communication skill.
- Good IT skills: Financial managers have to rely on technology for data analysis, probability assessment, and so many things so good IT skill is a must.
- Critical thinking and decision making: Financial managers have to give a strategy for long term profitable business plan which requires critical thinking and decision-making ability. They have to be innovative with high problem-solving capability. Their critical thinking ability will act as a catalyst while taking quick yet rational decisions.
- Attention to details: Financial managers do budget making, profit assessment which requires high numerical accuracy. They should give strong attention to details with an investigative nature.
- Time management skills: A financial manager must know how to finish work in time and which work to prioritize.
Salaries and benefits:
Financial managers usually obtain high pay. It ranked no 4 in world ranking among the best business jobs. And no 16 among the best paying jobs. They earn a median wage of $121,750 per year which makes $58.54 per hour. The best-paid earned an average of $173,920 and the lowest-paid earned an average of $89,670.
The other work benefits include:
- Annual performance-based bonus.
- High earning potential than most other jobs.
Working hours:
Like most of the jobs, financial managers also work 9 am to 5 pm with 5 days working schedule per week. Among 3 out of 1 financial manager work 40 hours a week. The pressure of the work varies with the institution and seniority.
Job satisfaction:
This sector of job field has a competitive status in the job market. As this job typically pays a high wage so, the work satisfaction is quite high. The workers are able to live a well enough extravagant lifestyle, which makes this profession quite attractive. The high competitive nature encourages the workers to improve their quality leading to personal growth. But besides this high-income facility, the job includes a stressing atmosphere with high responsibilities weighing down the shoulder. The work-life balance is moderate due to colliding nature of high income with high stress.
But overall this profession is a very good choice. If you have the great analytical ability with high communication skill and when you know your way to handle stress and pressure, then this is a perfect choice for you.
So now that you know everything about this career you can easily make your choice and plan one step ahead. If you find this article helpful then there are also some Best financial management books that will solidify your understanding and enrich your realm of knowledge.
