How to Become a Financial Manager

How to Become a Financial Manager

Every business, from a humble bakery in the neighborhood to the well-known fashion shop in the city, starts from a simple idea. This idea is then conceptualized through a business plan, which is crucial in determining if the proposed business will survive the ever changing and competitive world of business. One important detail that must be considered is the financial aspect; analyzing how money should be budgeted wisely and how to maintain the cash flow coming in and out of the business. This factor must not be overlooked, for it could make or break a business. Thus, financial manager is needed to keep the business alive.

Job Description of a Financial Manager

The Financial manager is responsible for planning, analyzing, organizing, and managing the business’ financial portfolio. He must collaborate with other department managers to be able to use and allocate the assets of the company efficiently and determine the current financial status of the business. He acts as the business’ financial adviser for his colleagues to be able to make a sound business decision[1].

Duties of a Financial Manager

A financial manager has various roles, and these roles can be his responsibility as a manager or by his departments assigned to his subordinates. One important duty done by a financial manager is to control and keep financial records like income statements, and interpret these records to forecast future trends. Another duty is managing company assets and liabilities, which includes determining the most effective method of using the financial resources of the business and settlement of financial obligations. His duty is not only limited inside the company, since a financial manager can also analyze competitors and market trends through financial data. He also creates relationships with people and organizations that can help or affect their financial status[2].

Educational Requirements for a Financial Manager

The financial manager must possess at least a bachelor’s degree in finance, accounting, economics or business administration, though other companies require applicants that finished a master’s degree in business administration, finance, economics or risk management[3].

 Financial Manager’s Working Environment      

The financial department of business entity is usually located near the top management’s office and has direct access to the business’ database that would provide the financial manager with the information they need. He is also required to attend meetings by financial and economic organizations, as well as meet with clients and subsidiary firms[4].

Financial Manager’s Salary

According to the Bureau of Labor, the mean hourly wage that a financial manager receives is $103,910. On an hourly wage, the salary is $49.96. However, Financial Managers in various areas in the U.S such New York City, San Francisco, and New Jersey gives the highest paid salary in the said profession3.

Financial Manager’s Job Outlook  

The opportunities for financial managers are affected by the progressing economy of the country. To be able to get the job, one must typically have a degree in business management and must possess an analytic, leadership and IT skill. The banking industry is currently leading in hiring financial managers, though nowadays they are hiring less finance managers because of the rise of electronic and Internet banking. Finance managers can also be hired on a temporary basis4.

If you are someone with an analytical mind, work well with finances and numbers, then a job as a financial manager may be a good choice for you. One of the best options, if you choose to pursue this career, it to get all the necessary information on the job, gain the appropriate credentials for employment, and start on your way to a fulfilling career.

 

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