Financial Manager
A Financial Manager is a key professional responsible for overseeing the financial health of organizations, including businesses, nonprofits, and government entities. Their role encompasses directing and safeguarding financial operations, preparing financial reports, performing budget analyses, and developing long-term financial strategies. Financial managers typically hold a bachelor's degree in fields such as economics, accounting, or business, along with several years of relevant work experience.
They function in an office environment, often utilizing technology and accounting software, and may work remotely or travel for meetings. Financial managers need to be analytical, organized, and detail-oriented, thriving in dynamic settings where they track financial trends and adapt to changes in regulations. The field offers various specializations such as treasury, risk management, and credit management, each with distinct responsibilities. Additionally, career advancement may require obtaining professional licenses or certifications, underscoring the importance of continued education in this rapidly evolving profession. With a median annual salary of $156,100 and a projected employment growth rate of 16%, pursuing a career as a Financial Manager can be both rewarding and impactful.
Financial Manager
Snapshot
Career Cluster(s): Business, Management & Administration, Finance, Human Services
Interests: Mathematics, accounting, financial trends, communicating with others
Earnings (Yearly Median): $156,100 per year $75.05 per hour
Employment & Outlook: 16% (Much faster than average)
Entry-Level Education Bachelor's degree
Related Work Experience 5 years or more
On-the-job-Training None
Overview
Sphere of Work. Financial managers are responsible for directing, monitoring, safeguarding, and ensuring the profitability of the financial operations of businesses, corporations, nonprofit organizations, and government entities. They provide diverse financial services, including financial report preparation and review, budget analysis, investment guidance, and long-term financial goal development. Financial managers develop financial strategies and plans to implement and evaluate the strategies.
Work Environment. Financial managers work in offices and are often required to travel to annual meetings and stockholder meetings. Depending on employer and job specialization, a financial manager may telecommute from a home office, visit client offices as a contractor, or work on a full-time basis in an employer’s office. A financial manager may be hired as a full-time leader of a finance team or as a term-of-project contractor. A financial manager’s work environment is based around technology, including computers and accounting software programs.
Occupation Interest. Individuals attracted to the financial management profession tend to be ambitious, organized, analytical, outgoing, and detail-oriented people who find satisfaction in tracking financial trends and learning new technologies and methods. Those who excel as financial managers continually educate themselves about and respond to regulatory change. Prospective financial managers may find satisfaction in developing investment plans and goals as well as staying up to date on financial best practices and ethical and legal matters in finance.
A Day in the Life—Duties and Responsibilities. Financial managers generally work within or in concert with management and accounting departments. Most businesses have a single financial manager to direct financial operations. In financial institutions such as commercial banks, mortgage companies, savings and loan associations, and credit unions, multiple financial managers direct the internal financial operations and those of clients, investors, and customers.
The daily duties and responsibilities of financial managers vary by job specialization. Areas of financial management specialization include controller, treasurer, credit manager, cash manager, risk manager, insurance manager, and banking manager. Financial managers working as controllers in accounting and auditing departments are responsible for drafting financial reports, such as anticipated future earnings, expenses, and income, required for regulatory compliance, stakeholder review, and tax purposes. Treasurers develop budgets that align with organizational goals, oversee mergers and acquisitions, raise capital, and supervise investment funds. Credit managers oversee all credit-related operations, including debt collection, setting credit limits, and deciding how and when to offer credit. Cash managers oversee all cash transactions. Risk managers minimize the risks associated with financial operations by purchasing insurance and limiting exposure to currency changes. Branch managers at banks oversee all bank branch operations, including loan approval, hiring, and community relations.
Organizations may also require financial managers to select, implement, and troubleshoot financial software systems, as well as stay up to date with regulatory and ethical issues and news in finance by reading finance industry journals and participating in industry associations. Financial managers employed by some organizations also participate in ongoing discussions of work teams, workflows, dynamics, and best practices.
Treasurers (161.117-070). Treasurers direct financial planning as well as obtain and invest funds for a local government.
Reserve Officers (186.167-054). Reserve Officers review their institution’s financial statements and direct the purchase and sale of bonds and other securities to maintain the asset/liability ratio required by law.
User Representatives (189.117-038). User Representatives in international accounting develop integrated international financial and accounting systems for banking transactions of multinational organizations.
Work Environment
Immediate Physical Environment. Financial managers generally work in pleasant office environments. The work of a financial manager requires sitting at a desk and using computers for long periods each day. Financial managers may work from home but often need to come to an office for meetings.
Human Environment. Financial managers interact with managers, business owners, employees, and stockholders. Financial managers should be comfortable attending meetings, giving frequent speeches, and supervising and directing employees.
Technological Environment. Financial managers communicate using computers, telephones, and Internet communication tools. They rely on financial analysis software and spreadsheets for analyses and reports. A financial manager must be technologically savvy and stay updated on emerging technology in finance.
Education, Training, and Advancement
High School/Secondary. High school students interested in pursuing a career as a financial manager should prepare themselves by building good study habits and by developing ease with numbers and mathematical functions. High school-level study of bookkeeping and mathematics can provide a strong foundation for college-level study in the field of financial management. Due to the diversity of financial manager responsibilities, high school students interested in this career path may benefit from seeking internships or part-time work with financial organizations.
Postsecondary. Postsecondary students interested in becoming financial managers should earn a bachelor’s degree in economics, mathematics, accounting, or business. Coursework in computer science, political science, and ethics may also prove useful in their future work. Postsecondary students can gain work experience and potential advantage in their future job searches through internships or part-time employment with local businesses or financial organizations. Professional licenses and certifications are available to prove competency and advance careers.
Related Occupations
− Actuary
− Auditor
− General Manager and Top Executive
Bibliography
"Financial Managers." Occupational Outlook Handbook. Bureau of Labor Statistics, US Department of Labor, 17 Apr. 2024, www.bls.gov/ooh/management/financial-managers.htm. Accessed 26 Aug. 2024.