- Almost every firm, government agency, and other type of organization employ one or more financial managers.
- Financial managers oversee the preparation of financial reports, direct investment activities, and implement cash management strategies.
- Managers also develop strategies and implement the long-term goals of their organization.
- The duties of financial managers vary with their specific titles, which include controller, treasurer or finance officer, credit manager, cash manager, risk and insurance manager, and manager of international banking.
- Controllers direct the preparation of financial reports, such as income statements, balance sheets, and analyses of future earnings or expenses, that summarize and forecast the organization's financial position. Controllers also are in charge of preparing special reports required by regulatory authorities. Often, controllers oversee the accounting, audit, and budget departments.
- Treasurers and finance officers direct their organization's budgets to meet its financial goals. They oversee the investment of funds, manage associated risks, supervise cash management activities, execute capital-raising strategies to support the firm's expansion, and deal with mergers and acquisitions.
- Credit managers oversee the firm's issuance of credit, establishing credit-rating criteria, determining credit ceilings, and monitoring the collections of past-due accounts.
- Cash managers monitor and control the flow of cash receipts and disbursements to meet the business and investment needs of their firm. For example, cash flow projections are needed to determine whether loans must be obtained to meet cash requirements or whether surplus cash can be invested.
- Risk and insurance managers oversee programs to minimize risks and losses that might arise from financial transactions and business operations. Insurance managers decide how best to limit a company’s losses by obtaining insurance against risks such as the need to make disability payments for an employee who gets hurt on the job or costs imposed by a lawsuit against the company. Risk managers control financial risk by using hedging and other techniques to limit a company’s exposure to currency or commodity price changes.
- Managers specializing in international finance develop financial and accounting systems for the banking transactions of multinational organizations. Risk managers are also responsible for calculating and limiting potential operations risk. Operations risk includes a wide range of risks, such as a rogue employee damaging the company’s finances or a hurricane damaging an important factory.
- Financial institutions—such as commercial banks, savings and loan associations, credit unions, and mortgage and finance companies—employ additional financial managers who oversee various functions, such as lending, trusts, mortgages, and investments, or programs, including sales, operations, or electronic financial services.
- These managers may solicit business, authorize loans, and direct the investment of funds, always adhering to Federal and State laws and regulations.
- Branch managers of financial institutions administer and manage all of the functions of a branch office.
- Job duties may include hiring personnel, approving loans and lines of credit, establishing a rapport with the community to attract business, and assisting customers with account problems.
- Branch mangers also are becoming more oriented toward sales and marketing.
- As a result, it is important that they have substantial knowledge about the types of products that the bank sells.
- Financial managers who work for financial institutions must keep abreast of the rapidly growing array of financial services and products.
- In addition to the preceding duties, financial managers perform tasks unique to their organization or industry. For example, government financial managers must be experts on the government appropriations and budgeting processes, whereas healthcare financial managers must be knowledgeable about issues surrounding healthcare financing.
- Moreover, financial managers must be aware of special tax laws and regulations that affect their industry.
- Financial managers play an important role in mergers and consolidations and in global expansion and related financing.
- These areas require extensive, specialized knowledge to reduce risks and maximize profit.
- Financial managers increasingly are hired on a temporary basis to advise senior managers on these and other matters.
- In fact, some small firms contract out all their accounting and financial functions to companies that provide such services.
- The role of the financial manager, particularly in business, is changing in response to technological advances that have significantly reduced the amount of time it takes to produce financial reports.
- Technological improvements have made it easier to produce financial reports, and, as a consequence, financial managers now perform more data analysis that allows them to offer senior managers profit-maximizing ideas.
- They often work on teams, acting as business advisors to top management.
- Those with a master's degree and certification will have the best opportunities.
- Regulatory changes and the expansion and globalization of finance and companies will increase the need for financial expertise and drive job growth.
- As the economy expands, both the growth of established companies and the creation of new businesses will spur demand for financial managers.
- Employment of bank branch managers is expected to increase because banks are creating new branches.
- However, mergers, acquisitions, and corporate downsizing are likely to restrict the employment growth of financial managers to some extent.
- Long-run demand for financial managers in the securities and commodities industry will continue to be driven by the need to handle increasingly complex financial transactions and manage a growing amount of investments.
- Financial managers also will be needed to handle mergers and acquisitions, raise capital, and assess global financial transactions.
- Employment of risk managers, who assess risks for insurance and investment purposes, also will grow.
- Some companies may hire financial managers on a temporary basis, to see the organization through a short-term crisis or to offer suggestions for boosting profits.
- Other companies may contract out all accounting and financial operations. Even in these cases, however, financial managers may be needed to oversee the contracts.
- As with other managerial occupations, jobseekers are likely to face competition because the number of job openings is expected to be less than the number of applicants.
- Candidates with expertise in accounting and finance—particularly those with a master's degree or certification—should enjoy the best job prospects.
- An understanding of international finance, derivatives, and complex financial instruments is important.
- Excellent communication skills are essential because financial managers must explain and justify complex financial transactions.
- As banks expand the range of products and services they offer to include wealth management, insurance, and investment products, branch managers with knowledge in these areas will be needed.
- As a result, candidates who are licensed to sell insurance or securities will have more favourable prospects.
Financial managers combine formal education with experience in one or more areas of finance, such as asset management, lending, credit operations, securities investment, or insurance risk and loss control. Workers in other occupations requiring similar training and skills include Accountants and auditors; Budget analysts; Financial analysts; Insurance sales agents; Insurance underwriters; Loan officers; Personal financial advisors; Real estate brokers and sales agents; Securities, commodities, and financial services sales.
- BA in Business Administration
- BA in Finance
- BA in Economics
- MBA
- Masters in Finance
- Masters in Economics
This career information is drawn from data provided by the U.S. Department of Labor.