Financial Managers
Additional Information
Duties
Typical financial management tasks include:
- Prepare financial statements, company reports, and forecasts.
- Keep an eye on the numbers to comply with the legislation.
- Assure the budgeting and financial reporting staff's safety.
- Pay attention to budgetary facts and look for ways to save.
- Maximize revenue by researching industry trends and possible growth areas.
- Your input may help us make better financial decisions.
- For example, financial managers analyze data and advise top managers on how to increase profits. They typically work in teams and advise firm presidents and CEOs.
Financial management must understand an organization's or industry's specific tax rules. In addition to knowing about appropriations and budgeting, healthcare financial managers must understand billing, reimbursement, and other business issues.
Financial managers are classified as follows:
They create financial reports that describe and forecast an organization's financial position. These reports may include income and balance sheets, as well as future profit or cost projections. Controllers create the reports required by the several government agencies that supervise businesses. Big business controllers generally monitor accountability and audit.
An organization's budget is overseen by a treasurer and a finance officer. They manage investments and other tactics for raising money, such as issuing stock or bonds, to help their company expand. They devise financial strategies for business mergers and acquisitions (one company buying another).
Credit managers oversee the firm's credit operations. Credit limitations are set, and past-due accounts are monitored.
Cash managers monitor the money moving in and out of an organization to ensure it's being used properly. Determining whether the company will have a cash flow shortfall or surplus is an excellent example.
Risk management is the technique of reducing an organization's financial exposure to risk. Fluctuations in currency and commodity prices is one of the risks they seek.
When an employee is handicapped due to a workplace accident or the company is sued, insurance managers make decisions about how to minimize damages.
Education
A bachelor's degree in finance, business, or a similar field is usually required. These courses teach analytical skills and methods.
Licenses and certifications
Professional certification for financial managers is optional. The Association of Government Accountants (AGA) certifies financial managers in federal, state, and municipal government. A bachelor's degree from an accredited university is required, as is a passing result on the certification tests. CGFMs must complete continuing education courses to keep their certification.
The CFA Institute awards the Chartered Financial Analyst (CFA) credential to investment professionals who pass three exams and have a bachelor's degree or four years of work experience. One year of relevant experience and a graduate degree in business, finance, or similar area from the Association for Financial Professionals qualifies one as a Certified Treasury Professional (CTP). People having a bachelor's degree or who are currently enrolled in an undergraduate program with a finance-related major and will graduate within two years receive the Certified Corporate Financial Planning Analysis Professional (FP&A) credential. Both certifications require an exam.
To be licensed in their state, CPAs must pass an AICPA exam (AICPA).
A Related Experiment
Most financial managers came from related fields. A financial analyst may have been a loan officer or an accountant.
Several organizations provide management training for dedicated and competent financial professionals.
Advancement
CFOs are often promoted from financial managers with substantial expertise (CFOs). These executives ensure that a company's financial accounts are correct.
Important traits
Analytical prowess financial managers must assess data and information to help executives make decisions.
Language and communication skills. They must be able to justify and explain complex financial transactions. Financial managers are in charge of this.
A stickler for minutiae. To avoid errors, financial managers must be precise and attentive when creating and analyzing reports like balance sheets and income statements.
Math skills. Algebra is vital in financial management. It also helps to understand complex financial documentation and global finance.
A sense of order. Financial managers need processes in place since they deal with so much data and paper.
Pay
It was estimated that in May of 2020 financial managers earned an average yearly salary of $134,180. It is the pay at which half of the workers in an occupation earned more than that amount, and half earned less. Ten percent of workers made less than $70,830, and ten percent earned more than $200,000.
Job Projections
There will be a 17 percent increase in the number of financial managers employed between 2020 and 2030, which is much higher than the average for all occupations.