One of the main factors behind a company’s success is the individual efficiency of each department. Every department is an integral part of the organization, and their success affects the organization directly. Companies ensure that all departments are headed by able individuals who can ensure their smooth working. One such department omnipresent in all types of companies is Finance. Companies hire Financial Managers to help them tackle the company’s finances effectively and ensure that the firm follows the predetermined strategies to achieve desired goals. This is why the demand for Finance Professionals is rising. Over 64,200 job openings each year are projected to be created in the decade 2020-30.
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What is Finance Management?
Finance Management, as the name suggests, involves managing a company’s finances. It involves proper planning, managing, and allocating funds to remain financially healthy. There are many finance-related decisions that financial managers have to take, such as dividends to be distributed, investments to be made, etc. Finance Management ensures that the company’s funds are utilised judicially and lead to efficient decision making. It also involves long-term planning of the company’s financial goal and devising detailed plans to achieve those objectives.
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How can you become a Financial Manager?
Finance is one of the most sought-after fields as it offers a vast career scope and excellent monetary compensation. Some of the ways by which you can enter into the field of Finance Management are-
The foremost requirement is to earn a Bachelor’s degree in Finance or related fields such as Economics and Accounting. This will help strengthen your foundational knowledge in the area.
Obtaining a Master’s degree can enhance your knowledge further in the field. You can earn a postgraduate degree in areas like Accounting, Business Management, and Economics. Some companies prefer individuals with a Master’s degree for the role of a Financial Manager.
Certifications like Certified Public Accountant (CPA) and Chartered Financial Analyst (CFA) also help make a career in the field of finance. Aspirants have to clear these exams in order to get the certification.
Online courses are yet another way to gain relevant knowledge about the field of finance. You can opt for online degrees from reputed institutions, boot camps, etc., which will help you enter the world of Finance.
Having relevant work experience as an intern or any other position such as Finance Analyst will help you get placed at top companies. The experience also enables you to stand out from the crowd and makes you an ideal job candidate.
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Skills needed to become a Financial Manager-
Many times, Financial Managers need to manage a team as they climb up the professional ladder. Hence, they should inculcate leadership skills.
Finance Managers should have excellent communication skills as they interact with the top management, employees from other departments, etc.
One of the many roles of Finance Managers is to discuss the financial reports and draw insights from them. Hence, they should have knowledge in the field of accounting too.
Finance Managers have to manage many different aspects of the business. They need problem-solving skills to help tackle difficult circumstances by using wit and knowledge.
Financial managers should be proficient in new technology, which can help them efficiently manage the tasks and complete them in less time.
Roles and Responsibilities of a Financial Manager-
A Financial Manager’s roles and responsibilities are numerous because of the vital role they play in the organization. Some of the roles and responsibilities of a Finance Manager are-
Companies have to regularly raise funds to meet specific business requirements. The job of a Financial Manager is to help facilitate the raising of funds either through debt or equity from interested investors at favorable terms and conditions.
The funds need to be allocated to different departments according to their needs. Finance managers have to keep in mind various aspects such as whether the fund is long-term or short-term, which departments can most optimally utilise the funds, etc. This is an essential job which requires an excellent knowledge of the company and its objectives.
Financial managers are tasked with preparing budgets detailing the expected future expenditures, sales, employee salaries, and revenue. It helps the management manage the company’s finances properly and work along a systematic budget. Finance managers need to consider various factors as well as sources of cost and revenue.
Constructing Cash Flow Statements-
Finance managers have to keep account of the cash flows of the business. They prepare cash flow statements which help them keep in check the input and output of money.
Being Informed About the Capital Markets-
If the company is listed on the stock, there is continuous purchase and sale of securities in the capital markets. This also involves a lot of risks. Financial managers should adequately understand the capital markets as they have to calculate the risks involved.
If you are interested in making a career as a Finance Manager, you can check out the Master’s of Business Administration (MBA) in Marketing Finance from the esteemed institution Liverpool Business School in collaboration with upGrad. You get the chance to network with fellow peers spanning several domains, which will help in your professional career. You will also be able to learn from industry experts and the esteemed faculty of O.P. Jindal Global University and can also take advantage of mock interviews, job fairs, etc.
The growth of companies following globalization has opened up many job roles for people in different sectors. This growth has accelerated further with the advent of the Internet and is expected to continue in the future. The Finance sector is one such field which has always been a beneficiary. According to the Bureau of Labor Statistics (BLS), the employment rate of Financial Managers is expected to grow by 17% in the period from 2020 to 2030.
What is the average salary of a Financial Manager?
Financial Managers are paid handsome monetary compensation for the value they bring to the organization. The average salary of a Financial Manager in India is approximately INR 10 lakhs per annum. The number varies according to the work experience, job location, company, etc.
What is the career scope in the field of Finance Management?
The field of Finance Management is vast. There are many job roles available for people in the area of such as Accountant, Finance Officer, Financial Analyst, Risk Manager, Investment Banking Analyst, etc.
What are some of the companies that hire Financial Managers?
Finance Managers are one of the essential professionals in any company. This is because any type of company has a Finance department to take care of the monetary aspect of the business. Many of the big names that hire Finance Managers at excellent monetary compensation and fringe benefits are Deloitte, IBM, Wipro, KPMG, etc.