A financial manager is a professional at the managerial level of an organization. This person is responsible for maintaining and tracking the financial health of that organization. Financial managers typically oversee a team of financial analysts depending on the size of the organization. They usually report to the organization’s chief financial officer. While jobs in this role are concentrated in banks and insurance companies, financial managers can be found in most industries. They are vital for organizational success. Financial managers usually start off in their careers in a lower level finance position, such as:
- loan officer
- accountant
- auditor
- securities sales agent
- financial analyst.
It’s here that they get the experience necessary to become a manager. Read on to learn more about the role of a financial analyst and the education and experience necessary to achieve this goal.
Salary
According to the United States Bureau of Labor Statistics, financial managers earn a median annual salary of $109,740. This means that half of those in the profession make more than this amount, while half make less. The highest paid financial analysts work in professional, scientific, and professional services, followed by:
- management
- finance and insurance
- manufacturing
- government
The highest paying industries for this role include:
- securities and commodities
- investment
- agents for entertainers and athletes
- insurance and employee benefits
While few financial managers work part time, the median hourly salary for those who do is $52.76.
Beginning Salary
The lowest paid 10 percent of those in this profession earn about $59,630, which is the beginning salary for this position. Financial managers usually have about five years of experience in the finance industry before moving into a management role. Starting salary also varies greatly based on industry and region. The top paying states for financial managers are, in order:
- New York
- New Jersey
- Delaware
- Colorado
- California
The lowest paying states are:
- Idaho
- Mississippi
- Kentucky
- West Virginia
Key Responsibilities
Financial managers are responsible for maintaining the financial health of an organization. They do this through monitoring cash flow and investments. They also produce regular reports and make long-term plans for the organization’s financial future. Various types of financial managers specialize in different areas of finance, such as:
- directing financial reporting
- directing organizational budgets
- overseeing credit, monitoring cash flow
- determining financial risk
- obtaining and maintaining insurance policies
Depending on the organization, financial managers may also be called comptrollers or treasurers.
- About 28 percent of financial managers work in finance and insurance
- 10 percent in management of other types of companies
- 10 percent in professional, scientific, and technical services
- 8 percent in manufacturing
- 8 percent in state and federal government
Necessary Skills
Perhaps the most important skills for financial managers are the ability to analyze and make decisions that affect the future of an organization. In this role, managers are responsible for producing information that will support decision-making for key executives. Financial managers must be incredibly detail-oriented and organized. They must also have impeccable math skills. A strong ethical foundation is also key for this role. Although the job is technical, communications skills and the ability to lead a team are useful in this role, particularly for those who work in larger organizations.
Degree and Education Requirements
In most cases, it is possible to become a financial manager with a bachelor’s degree. However, several years of experience is typically required. Also helpful is an advanced degree in finance or a related field, such as:
- economics
- accounting
- mathematics
Financial managers may also consider professional certification from an organization such as the CFA Institute or the Association for Financial Professionals.
Rewards and Challenges
This is an excellent role for a person who wants to help shape the future of an organization, large or small. Financial managers have a high amount of responsibility. They help contribute to the success of an organization at the executive level as part of a team. Although analytical skills are key, communications with others is an enjoyable part of this role.
However, with these responsibilities and rewards come the challenge of being accountable for an organization’s finances and the stress of making sure that all reports and forecasts are impeccable. In addition, professionals in this role may work long hours and be called upon for major projects on short notice.
Getting Started
If you’re interested in becoming a financial manager, consider shadowing someone who works in this role. It will help you gain an understanding of what it entails on a daily basis. If you are still a high school student, take the highest level math and finance classes that your school offers. Focus on earning an excellent GPA. If you’re a college student, in addition to excelling in your finance classes, you should join any professional organizations that are available to you. Seek an internship or volunteer at the type of organization where you’d like to become a financial manager. This is is an excellent way to get your foot in the door. It’s never too early to begin networking and making connections in the field, even as a student.
Future Outlook
According to the Bureau of Labor Statistics, growth in this profession will be average when compared to growth in other occupations. About a nine percent increase in roles for financial managers is projected. This translates to approximately 47,000 new jobs. The highest level of growth for financial managers will be in the realm of international finance, as well as in roles that call for cash management expertise. While competition for jobs is fierce, the best prospects are for candidates with an advanced degree in finance or economics.
If you’re interested in a career in finance, consider putting yourself on the path to becoming a manager. Earn your bachelor’s degree. Look for a job as a financial analyst with room to grow. Later, earn an advanced degree. This is the best route to achieve success in this role.
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