How to Become a Financial Manager

In today’s competitive business field that is constantly changing and expanding, financial management is essential to ensure businesses and organizations are meeting financial goals and operating effectively. Financial managers are professionals who direct and organize the financial activities of various organizations including banks, government agencies, brokerage firms, and insurance companies.

What does a financial manager do?

Financial managers focus on employing long-term objectives of their organization and developing effective strategies to meet these goals. They put cash management strategies into practice and supervise direct investment activities and the preparation of financial documents. They are responsible for approving or rejecting financial applications such as personal and commercial loans and lines of credit. Financial managers also create and examine information to evaluate the current and projected financial states of their organizations.

Many financial managers specialize in a specific area and gain certain job titles such as finance officer, controller, credit manager, cash manager, manager of international banking, and risk and insurance manager.

What kind of training does a financial manager need?

Financial managers typically need at least a bachelor’s degree in accounting, business administration, finance, or economics. However, many employers seek individuals with a master’s degree in a business-related field. Click here to see a list of business degree programs.

Many financial managers advance to their positions by gaining experience and excelling at their current career. Others complete formal management training offered by employers. Financial managers who work in accounting departments are generally required to have the Certified Public Accountant credential.

Financial managers must complete continuing education on a regular basis to deal with changes in federal and state laws and regulations, the increasing complexity of international trading, and the rise in new and sophisticated financial tools. Many employers collaborate with colleges and universities to offer local and national training programs for employees. Click here for a list of programs for financial management training.

What are the prospects for a career as a financial manager?

Jobs for financial managers are anticipated to increase 8% over the 2008 to 2018 decade, which is as fast as average for all professions (1). Job growth will be stimulated by the development and globalization of finance and changes in regulations. The growth of established organizations and the development of new businesses will also increase the demand for financial managers.

Individuals seeking to become financial managers will experience strong competition, especially for high-paying positions. Those with advanced education, professional certification, and extensive work experience will have the most favorable job prospects. Click here to see graduate programs in business.

How much do financial managers make?

As of March 2011, financial managers generally earn average annual salaries between $48,891 and $83,772. Average annual salaries vary greatly by employer, education, experience, commission, and benefits.

A career as a financial manager is an ideal choice for individuals with solid understanding of various business areas paired with excellent business skills, problem-solving skills, and analytical abilities. The position features a good job outlook and higher salary than many financial careers making it a positive job choice in the finance field. Click here for a list of programs to understand how to become a financial manager.

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