What does a Financial Manager do?
Learn all about Financial Manager duties, skills and much more. Get expert advice on how to become a Financial Manager.
Published 4 min read
A financial manager is responsible for the financial health of an organization. They produce financial reports, direct investment activities, and develop strategies to grow revenue and reduce costs. A financial manager must be able to understand complex financial data and make sound decisions in the best interest of the organization.
Financial Manager job duties include:
- Overseeing the preparation of financial reports
- Directing the investment activities of the organization
- Developing long-term business plans based on financial analysis
- Coordinating and preparing annual budgets
- Analyzing financial data to identify trends and make recommendations for improvement
- Monitoring compliance with financial regulations
- Negotiating loans and lines of credit with banks and other financial institutions
- Managing the organization’s cash flow
- Preparing tax returns and ensuring compliance with tax laws
Financial Manager Job Requirements
A Financial Manager is responsible for the financial health of an organization. They produce financial reports, direct investment activities, and develop strategies to ensure the long-term financial security of a company. A Financial Manager should have a bachelor's degree in finance or a related field, and experience working in accounting, finance, or another relevant field is preferred. Many organizations require their Financial Managers to be certified in financial management.
Financial Manager Skills
- Financial analysis
- Financial planning
- Financial modeling
- Risk management
- Treasury management
- Working capital management
- Cash flow management
- Credit management
- Insurance management
- Investment management
How to become a Financial Manager
A financial manager is a professional who helps organizations and individuals make sound investments and financial decisions. Financial managers typically have a bachelor’s degree in business, accounting, finance, or a related field. Many financial managers also hold professional certification, such as the Certified Public Accountant (CPA) or Certified Financial Planner (CFP) designation.
The role of a financial manager can vary depending on the size and type of organization. In larger organizations, financial managers may specialize in areas such as investment management, treasury management, or risk management. In smaller organizations, financial managers may be responsible for all aspects of the organization’s finances.
Financial managers use their skills in analysis and decision-making to make recommendations on how an organization can use its financial resources to achieve its goals. They also develop and implement financial plans and budgets, monitor cash flow and financial performance, and oversee the preparation of financial reports. Financial managers also work with other managers to ensure that the organization’s overall business strategy is aligned with its financial goals.
If you are interested in becoming a financial manager, you should start by pursuing a bachelor’s degree in business, accounting, finance, or a related field. You can also complete coursework through an online degree program or through evening and weekend classes at a local college or university. In addition to completing coursework in finance and accounting, you should also take classes in economics, statistics, and computer science.
After completing your undergraduate degree, you should consider pursuing professional certification through the Certified Public Accountant (CPA) or Certified Financial Planner (CFP) programs. These programs will give you the opportunity to demonstrate your knowledge and skills in financial planning and analysis. To become a CPA or CFP, you must pass an exam administered by the respective organization.
Once you have completed your education and training requirements, you should begin searching for entry-level positions in finance or accounting within small to medium-sized organizations. As you gain experience in the field, you can pursue opportunities for advancement within larger organizations. With experience and demonstrated success in financial management, you can eventually become a chief financial officer (CFO) or other senior-level executive within an organization.
Related: Financial Manager Resume Example