If you are good at numbers, and love to play
with money, a career in Financial Management can be an imminent choice for you.
All it requires is a decent education followed by relevant experience.
Wondering how to get there? This post is for you.
Finance is at the core of every business
decision you take in life. Having clear budgetary planning is essential for
meeting short-term, as well as long term career goals, further, a company must
have the understanding of the financial implications of any decision they take
to ensure long term success. Moreover, if you have a private, business concern,
you must ensure that all financial decisions should comply with the local laws,
and should be in line with the guidelines laid out by statutory controlling
bodies. All these tasks are the responsibilities of the finance manager, also known as finance analyst or
business analyst.
Financial management deals with providing
advice and support to the clients related to their financial planning using the
available datapoints. This advice serves as the basis of critical business
decisions and, therefore, room for error is miniscule. There is a saying that financial
managers are good at money, after all they are in charge of overseeing the
finances of multinational corporations, businesspersons of significant stature
and other prominent individuals.
Nature of the work
Financial managers work in teams. In
coordination with their team members, Finance managers work to produce
financial reports, profit projections, cash statements and a number of
different analysis that lead to accurate decision making. Number-crunching and report
creation are the order of the day in a finance manager’s life. Employed at virtually
every organization, private or government, political or administrative, Finance
managers execute strategies for effective capital management and administer
different investment activities. The managers are also expected to develop and achieve
long term business strategies and goals for the organization.
In different companies, the role is known by
different names and accordingly the responsibilities also vary here and there.
For example, some companies have a treasurer or finance officer while others employ
credit and cash manager. Some organizations hire controllers who oversee the
audit, and accounting department. It is under their supervision that separate
financial reports such as balance sheet, income statements and future expenses
predictions are completed. A treasurer adds a little variation to this role by
working to align the organization's budget with its financial and business
goals.
Since financial managers are required in all
kinds of organizations, there are times when they perform company specific
roles. For example, a financial manager in a hotel will have to have all information
about the various expenses and means of earning of the hotel, and how it can be
augmented keeping the future in mind.
Training and
Qualification
A career in finance is never completed without appropriate
professional credentials which can be a bachelor’s degree or a diploma in
finance, followed by a master’s degree. With
growing competition, most companies now only hire candidates who have advanced
academic qualifications, which effectively means, that Master’s degree in
finance is the most preferred learning qualification. Those finance managers
who work in the accounting department needs to take additional training
certificates such as CPA (Certified Public Accountant). A degree in business administration,
economics or accounting also serves as a good basis for making a career in this
field.
For higher positions, experience is a definite
requirement. There are positions for which organizations prefer candidates who
have climbed up the ladder through working their way in instead of hiring
college grads. Advancements in the career can be achieved by pursuing
certification courses such as CFA. The CFA institute offers Certified Financial
Analyst title, which is highly revered in the corporate circles.
Owing to the nature of their work, Finance
managers need to have excellent maths skills, reasoning ability and
communication skills. In addition, they
must have a sound understanding of all business concepts.
Job prospects and employment
prospects
Jobs in finance
can be found in any organization. Most popular work destinations for finance
managers are banks, credit unions, wealth management firms, government
institutions, finance companies, retail companies, and insurance providers.
Employment opportunities are expected to increase in the next decade although
one would have to face stiff competition to make his mark. The globalization in
finance is going to work as a catalyst for further growth, expanding the employment
base of finance managers.
About the Author-
Saurabh Tyagi is
a new media enthusiast with professional experience as a blogger. He keeps an
eye on the current educational trends across various banking and finance colleges
and universities in India.
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