Role of a Finance Manager
In the world of finance, accuracy, time management, and credibility is a must. To be able to achieve this goal, the finance staff ensures that this will be all followed, guided by a finance manager.
The responsibility of a Finance Manager
A finance manager is responsible for maintaining the financial health of an organization. He/she develops strategies and plans for financial goals produces financial reports and gives direction in investment activities. There are many types of financial managers- these include insurance managers, CFO’s or chief financial officers, cash managers, controllers, credit managers, risk managers, and treasure and finance officers.
Financial Manager Job Description
A financial manager must be able to prepare financial statements, business activity reports, and financial forecasts. They must also oversee the financial details to ensure that all financial requirements are met. They are also responsible for supervising the employees who handle financial budgeting and reporting and maintains the financial health of the organization. A financial manager must also find ways to minimize costs based on the company financial reports. They are also responsible for analyzing the market trend to maximize the organization’s profits and perform data analysis.
Not all financial managers do the same job- a financial manager must perform the tasks specific to their industry. For example, financial managers in the healthcare department must be knowledgeable in healthcare finance, while financial managers working in the government must be knowledgeable on government appropriations and budgeting. The common denominator of all financial managers is that they must have the expertise in the tax laws and regulations of their industry.
How to Become a Financial Manager
To become a professional financial manager, one must have a minimum of a bachelor’s degree in business administration, finance, economics or accounting. However, more employers nowadays desire to have a candidate with a master’s degree in economics, administration or finance. They require this because these fields develop the student’s analytical skills and knowledge in financial software and analysis methods, which is part of the financial manager’s duties.
One must also have 5 or more years of experience in the field of finance or business work. Certification is not required, although it may be an advantage for you to obtain one to demonstrate your level of financial competence such as CFA or Chartered Financial Analyst certification or a Certified Treasury Professional credential.
The purpose of a financial manager
With a lot of responsibilities, a financial manager plays an important, crucial role in the organization. With the help of a financial manager, businesses avoid major financial risks while increasing their profit. The financial manager does this by monitoring intently on operational costs and evaluates the financial strengths and weaknesses of the organization. Being skilled and knowledgeable in legal requirements and the current market trends, the financial managers are the ones who advise the top executives in their business plans and strategies for the future.
Like any other profession, a financial manager must be expert and skilled in everything he/she does. Overseeing the finances of the whole organization is truly a serious and a challenging job, but with knowledge, consistency, and accuracy, a financial manager will be able to handle it and prepare the organization for a bright future.