Finance management is the backbone of any organization whether it is a small scale business or a large industry. In fact, it is something which each and every person does on daily life. A person who has no management on income and expenditure would end up having a reckless and penniless life. When the managing financial matter comes to big farms, the task is quite hectic and complex.
One skilled person needs to manage that because little errors can lead to a big loss for a company. This profession is something which will never have arecession, and it will always have demand. In fact, this post availability is directly proportional to the number of industries and offices being made. More and more people are getting into this course on higher study level and prospering in their life.
Role of a financial manager
You might wonder exactly what the role of a financial manager is. A financial manager in a company is responsible for all the things associated with finance and accounting. He or she has to create all reports on finance, suggest new financial strategies beneficial for the company and has to guide in cases of direct investment.
Suppose you do not have a manager in your company, first problem that will arise is that who will be responsible for doing all the calculations, checking and financial account making. The second problem is that even if you get someone without having a knowledge of financial management, he or she obviously will have lesser idea and knowledge about this field.
So that person is prone to make many mistakes and might not meet deadlines. As a result of which, there might be abig loss for the company. If you are a financial manager, you have to do the following:
- Create all statements related to finance, forecast and reports on business activity.
- Keep a track on all financial dealing and transactions of the company to make sure that everything is done
- If you are in a higher post, you have to supervise your juniors so that they do their work properly or do not face difficulty.
- Review accounts report of the company on periodic basis and suggest ways to cut down expenses.
- Stay up to date on latest marketing policies to have maximum profit.
- Guide management committee in all sorts of decision associated to finance.
In short, you have to responsible for A to Z of all financial matters of the company. Some example of financial managers that you find on day to day life is listed below:
- Credit manager
- Chief Financial Officer (CFO)
- Cash manager
- Risk manager
- Insurance manager
Financial management is one of the most demanded subjects presently. In the year 2014, around 555900 posts were allotted to this particular subject only all over the year. This figure is increasing since then yearly. The organizations that seek financial managements are:
- Insurance companies are the largest seeker of financial They alone seek about 29% financial managers.
- Next are the Management committees of several industries and offices which seek about 12%.
- Several service providers, whether technical or non-technical are very close to the previous seeker, at around 11%.
- Manufacturing units seek about 8% financial managers.
- Government agencies seek around 8% managers as well.
Now many entrepreneurs are seeking managers as well when the business grows bigger. One great thing about this profession is that financial managers are treated the similar way as top executives are treated in a company.
They get enough respect and are never treated like a junior officer is treated. In fact, the fear of losing ajob is also not much unless a manager performs awfully. To understand the career prospects of students in this field, you can take assistance of online academic professionals.
How to become a financial manager?
In order to pursue this course, you need to find a good and reputed business school near you. You can have knowledge in any course related to economics, accounts, finance or administration of thebusiness.
Financial management is not an educational course. It is the name of the profession. Any special knowledge on finance will fetch this job. Having working experience of few years will fetch amuch better job. For best output, one should have a master degree in any financial course.
Training and Certification
These days bachelor degree is losing the same value it had before. Many finance educational institutes provide certificates after completion of course, though it is not mandatory.
For example, CFA or Chartered Financial Analyst is a certificate offered to a person who has completed a course with bachelor’s degree, passed three exams and has a work experience of four years.
There is another organization called Association for Financial Professional who provide a certificate to those who had passed an examination and had work experience of two years.
It is not necessary that a financial manager has to have a work experience in the same field. There are many such managers who had work experience as an accountant, loan officer or sales agent. There are even few companies which provide a training of short period to the employees they hire. This is a part of their company policy.
There are few things which a financial manager must have which are:
- Skills in mathematics so that you can have no error in calculation and so that you have easier ways to solve complex calculation and thereby save time.
- Communication skill so that you can present and elaborate your report or review other’s report confidently.
- Organization skill so that your work is organized and you do not lose tracks of your work or do not lose valuable documents.
- Analytical skill to analyze and scrutiny financial matters.
- Detail orientation so that each and every step of any report is well explained which is easily comprehended by any person.
When you are dealing with financial matter all the time, you should have an idea how much of that money will go into your pocket if you do this job. In the year 2015, a survey was conducted, and a rough estimation of the annual salary of a financial manager was found out.
- Technical and other service providers provide an annual salary of around $140160.
- Management committees of companies provide around $136490.
- Manufacturing units provide around $117310.
- Insurance companies provide around $113040.
- Government agencies provide around $107120.
These figures will vary according to places and financial condition and currency of that place. What you are thinking for?