Financial Manager Career: Salary, Skills, and Job Outlook

Introduction

The career of a financial manager will without doubt remain viable for decades to come, and it is a field that deserves strong recommendation to anyone considering it. This is largely because the financial manager plays a vital role in any organization. The financial manager is responsible for managing the organization's funds to ensure the maximization of returns on investment (Accounting Tools, 2015). In addition, the financial manager is expected to ensure that a fitting control system is in place over the transfer and investment of funds (Accounting Tools, 2015). In general, the financial manager is responsible for ensuring that the company remains financially healthy. Finance is a field that has existed throughout the history of organized commerce and is expected to continue as long as organizations exist. Without a financial manager, an organization can become financially unstable and risk becoming bankrupt or even obsolete.

Financial managers are accountable for the financial health of an organization. In particular, they generate financial reports, direct investment activities, and develop strategies and plans for the long-term financial objectives of their organization (Bureau of Labor Statistics, 2014). The principal responsibilities of a financial manager can be grouped into four key areas: management, financial analysis, budgeting, and the management and investment of funds.

Description of Career

The finance manager is tasked with maintaining a documented and acknowledged system of accounting procedures and practices. There is also the responsibility of administering the activities of the treasury division, along with designing an organizational structure sufficient for achieving the department's aims and objectives. The finance manager is also accountable for managing any functions that have been outsourced (Accounting Tools, 2015).

The finance manager plays a vital role in the financial analysis of a company. One of the key tasks in this regard is interpreting the organization's financial results to the senior management team and recommending improvement activities. This includes participating in cost-reduction analysis across all areas of the organization to ensure cost-effectiveness and profitability. Financial analysis also involves participating in benchmarking reviews to identify areas of the company with potential for operational enhancement. The finance manager does this in conjunction with appraising competitors' performance and delivering reports on major issues to senior management.

The finance manager is also responsible for the company's target costing practices, in order to develop products and services that align with predetermined price objectives. After benchmark analysis, the finance manager assists in establishing product pricing with respect to the features offered and competitor pricing. The finance manager is also responsible for managing the capital budgeting process, centered on constraint analysis and discounted cash flow analysis. Finally, the finance manager is expected to collect and analyze key business metrics and present them to top management (Accounting Tools, 2015).

The finance manager oversees and presents the annual financial budget of a company. Any variances from the original budget are identified by the financial manager and subsequently presented to top executives along with explanations for such variances. In addition, the finance manager is expected to assist company management in formulating the general strategic direction (Accounting Tools, 2015).

In general, the finance manager is responsible for forecasting cash flow positions, associated borrowing requirements, and the funds available for investment. The manager is tasked with investing the firm's funds and ensuring that adequate funds are accessible to meet ongoing operational and capital investment needs. The finance manager is also tasked with employing various techniques — such as hedging — to mitigate financial risks associated with interest rates on the business's borrowings and its foreign exchange positions. The finance manager determines the company's capital structure, which encompasses identifying and assembling debt and equity financing. Finally, the finance manager recommends appropriate dividend distributions, based on historical dividend arrangements and projected cash flows (Accounting Tools, 2015).

There are several career paths available to a finance manager with regard to promotions and professional advancement. According to PayScale (2015), finance managers may advance into high-paying positions such as Vice President of Finance. Other promotional positions include Chief Financial Officer (CFO) and Senior Finance Manager. In most instances, however, Finance Director is the most common promotion for finance managers moving up the career ladder. A less common but notable transition for financial managers is taking on the role of Financial Controller. Common career path positions include: Financial Controller, Finance Director, Finance Manager, Vice President (VP) of Finance, Chief Financial Officer, and Senior Finance Manager.

There are several career requirements necessary for entering this field. The first step is attaining a Bachelor's Degree, which is considered the minimum education requirement for a finance manager. A Bachelor's Degree in Finance is generally regarded as most suitable; however, other majors may be acceptable if they encompass business, finance, or management. Students are advised to complete an internship as a means of acquiring practical work experience. Attaining a master's degree is also considered beneficial, since employers tend to prefer candidates with advanced educational qualifications. Earning a graduate degree can enhance job prospects and accelerate career development. The ideal graduate degree for a finance manager career is in finance, economics, or business administration (Study.com, 2015).

Qualifications Needed to Enter the Field

A third requirement is gaining relevant work experience. According to the Bureau of Labor Statistics (2014), suitable work experience and references are essential for aspiring financial managers. These professionals typically begin their careers in related positions, such as financial accounting or financial analysis. Financial managers are generally senior employees in most organizations and may be promoted from within. Companies that hire external financial managers typically seek candidates with appropriate experience from comparable roles. Any work experience related to finance or corporate management can be beneficial (Bureau of Labor Statistics, 2014).

Finally, professional certification is another important qualification in this career. Certification can demonstrate a high level of competence and proficiency. One widely recognized credential is the Chartered Financial Analyst (CFA) designation, offered by the CFA Institute. Individuals with a bachelor's degree and appropriate work experience are eligible to sit for the three examinations that lead to the CFA qualification. Attaining certification is important, as it can open additional job opportunities and support career progression (Study.com, 2015).