A financial manager is responsible for the company’s financial data, budgeting, and tax laws. They handle the company’s budget by managing receipts and expenditures, which may include analyzing cash flow to make sure that they are not overspending. They also work with accounting professionals to ensure that the company complies with all tax laws, as well as legal regulations.
Financial managers may also be responsible for overseeing large projects such as mergers or expansions. These projects require a lot of money up front, so a business’ financial manager must make sure that they can afford these expenses. This is why financial managers work closely with chief executives who need to approve these investments.
Key Skills for Financial Managers
The most important skill for a financial manager is the ability to understand and analyze numbers. This includes formulas and budgeting, as well as understanding tax laws, regulations, and company management. Financial managers also need interpersonal skills to deal with clients, supervisors, analysts, and other professionals.
How to Become a Financial Manager
Finance and accounting professionals need to stay on top of their professional knowledge, whether through formal education, certifications or by attending seminars. Be aware that some employers may prefer candidates who have a bachelor’s degree in finance or an accounting-related field from an accredited college or university. The knowledge you might need:
• Accounting: Recording financial transactions and analyzing data for decision making
• Economics: Analyzing market trends and the effect of these trends on financial markets
• Finance: Understanding finance principles, such as asset valuation and risk assessment
• Mathematics: Ability to solve complex problems using various mathematical techniques and formulas
Do You Need a Degree as a Financial Manager?
To become a financial manager, you will need an undergraduate degree in finance, economics, or a related field. Though not required, many employers also require advanced degrees such as a Master of Accounting (M.A.), Master of Business Administration (MBA), or Juris Doctorate (J.D.).
