Financial Manager: A Rewarding Career Path—How to Get Started

Becoming a financial manager is a rewarding career path that offers opportunities for growth, high earning potential, and the chance to impact businesses positively. If you’re interested in managing finances, guiding investment decisions, and strategizing financial plans, you must know the necessary steps, educational requirements, and skills needed to be a thriving financial manager.

What is a financial manager?

A financial manager is a professional who oversees and manages an organization’s financial health. They play a crucial role in ensuring that a company’s financial operations are efficient, compliant, and aligned with the overall business strategy. Here are the main tasks of a financial manager:

• Budgeting: Creating and managing budgets to ensure the company has enough money for its operations and growth. This includes budgeting and ensuring that the organization adheres to its spending guidelines.
• Financial Reporting: Preparing financial statements and reports that show how the company is doing financially. Company leaders and outside investors use these reports to make informed decisions.
• Investment Analysis: Looking at investment opportunities to help the company earn more money. This involves studying market trends, assessing risks, and recommending the best places to invest.
• Risk Management: Finding and reducing financial risks to protect the company’s assets. This includes making sure the company follows financial laws and regulations.
• Strategic Planning: Working with other departments to ensure that financial goals match the company’s overall business plans. Financial managers contribute to the company’s financial strategy and long-term growth.

Financial managers are essential for a company’s success. They ensure the company stays financially stable, compliant with laws, and on track for growth. As more businesses require skilled finance managers, this position provides excellent employment chances.

What is the job outlook of a financial manager?

Becoming a financial manager offers strong job prospects, and the demand for such managers is likely to increase dramatically in the future.

According to the US Bureau of Labor Statistics, job opportunities for financial managers are expected to grow by 16% between 2022 and 2032. This growth rate is much higher compared to the average job growth of just 3% for all occupations over the same period. This indicates that there will be a lot more chances in this industry, making it a potential career path.

In May 2023, the average yearly salary for financial managers was $156,100. This salary reflects the strong demand for and importance of financial managers in overseeing an organization’s financial health and making strategic decisions.

What are the education requirements for being a financial manager?

To become a financial manager, you must have a strong educational background in finance or a related profession. Here are the critical education requirements:

1. Bachelor’s Degree

The first step is getting a bachelor’s degree. This is frequently required for entry-level positions and provides you with the necessary foundational knowledge. Common fields of study include:

• Finance
• Accounting
• Business Administration
• Economics

2. Master’s Degree (Optional but Helpful)

While not usually required, a master’s degree can help you advance in your career. A Master of Business Administration (MBA) with a finance specialization or a Master’s in Finance offers advanced knowledge and abilities. Some advanced positions may require a master’s degree.

3. Professional Certifications (Optional but Beneficial)

Getting professional certifications can show your expertise and dedication. Some popular certifications for financial managers include:

• Certified Public Accountant (CPA): This certification is highly regarded and demonstrates expertise in accounting and financial reporting.
• Certified Financial Manager (CFM): This certification emphasizes financial management skills and strategic decision-making.
• Chartered Financial Analyst (CFA): Ideal for those specializing in investment management and analysis, this certification is recognized worldwide.

4. Continuing Education and Training

The financial industry is ever-changing, and continual education is crucial. Staying up to date on industry developments, new legislation, and technology can help you remain competitive. This can be done through workshops, seminars, webinars, and professional development courses.

What are the requirements to be a financial manager?

Becoming a financial manager involves meeting several vital requirements. Aside from education and certification, you also need experience and skills to become a financial manager.

Gaining Relevant Work Experience

Experience is key to becoming a financial manager. The majority of occupations require several years of financial or accounting experience. Here are some ways to get that experience:

• Internships: Doing internships while you’re studying can give you hands-on experience and help you make connections in the industry.
• Entry-Level Positions: Starting in roles like financial analyst, accountant, or auditor helps you build the skills and knowledge needed for a financial manager role.
• Networking: Interacting with professionals in the field can lead to career leads and important mentorship.

Developing Key Skills

To be successful as a financial manager, you need to develop several important skills:

• Analytical Skills: You must be able to analyze financial data and make informed decisions.
• Leadership Skills: Financial managers frequently lead teams, so you must motivate and guide your colleagues.
• Communication Skills: Being able to explain financial information clearly to people who aren’t finance experts is essential.
• Attention to Detail: Financial reporting and analysis require high levels of accuracy.

Gaining relevant work experience and developing these key skills will prepare you to become a successful financial manager.

How long does it take to become a financial manager?

The time it takes to become a financial manager varies according to your education and job choice. Here’s a general outline:

• Bachelor’s Degree: A bachelor’s degree in finance, accounting, business administration, or a similar discipline typically requires four years of study. This degree is essential for entry-level occupations and provides the fundamental information required.
• Work Experience: After getting your degree, you need to gain relevant experience in finance or accounting. This typically takes another three to five years. Starting in roles like financial analyst, accountant, or auditor helps you develop the skills and knowledge necessary for a financial manager position.
• Advanced Degrees/Certifications: Although not always required, pursuing an advanced degree or certification can improve your qualifications. Earning a Master of Business Administration (MBA) or qualifications such as CPA or CFA might take between one and two years. These qualifications can make you more competitive for higher-level financial manager roles.

In total, you can expect to spend around seven to ten years from starting your education to becoming a financial manager. This includes the time to complete your degree, gain work experience, and, if you choose, obtain advanced degrees or certifications.

Additional Steps to Becoming a Financial Manager

Once you’ve obtained education, work experience, and skill requirements, you can proceed to the following steps:

• Network and Build Professional Relationships: Networking with other finance professionals can help you learn about job opportunities and gain valuable insights. Attend business events, join professional groups, and meet with mentors who can help you further your career.
• Apply for Financial Manager Positions: With the right education, experience, and skills, start applying for financial manager roles. Customize your CV and cover letter to emphasize your relevant experience and credentials.
• Continue Professional Development: Once you’ve secured a career as a financial manager, keep improving your skills and expertise. Stay current on industry developments, legislation, and innovations by continuing your education and training.

Do you have what it takes to be a financial manager?

Becoming a financial manager is a great career choice with solid growth and good pay. Financial managers handle essential tasks like budgeting, reporting finances, analyzing investments, managing risks, and planning strategies. With an adequate education, experience, and talents, you may build a successful and fulfilling career as a financial manager.