Career Development

What Does a Finance Manager Do?

Find out what a finance manager does, how to get this job, and what it takes to succeed as a finance manager.

Finance managers are responsible for overseeing the financial operations of their organization. They commonly manage a team of accountants, auditors and other finance professionals who help them make sure that everything is running smoothly.

Finance managers may also be tasked with developing and implementing strategies to improve the overall performance of the company’s finances. This might include anything from creating new policies or procedures to implement better internal controls to finding ways to reduce costs or increase revenue.

Finance Manager Job Duties

A finance manager typically has a wide range of responsibilities, which can include:

  • Setting up budgets for departments within the company and monitoring spending to ensure it does not exceed budgeted amounts
  • Providing analysis and recommendations to senior management regarding changes in interest rates or other economic factors that may affect the company’s performance
  • Ensuring that all accounting practices are compliant with federal and state laws and regulations
  • Working with external auditors to ensure that company financial statements are accurate and meet regulatory requirements
  • Assessing the creditworthiness of potential borrowers to determine whether they should be approved for a loan
  • Preparing reports on financial performance for internal departments within the company
  • Managing the day-to-day operations of the accounting department, including hiring staff and training employees
  • Preparing budgets and developing long-term plans for capital expenditures based on projected revenues and expenses
  • Reviewing financial statements to identify areas of risk or inefficiency that may indicate problems in an organization’s operations

Finance Manager Salary & Outlook

Finance managers’ salaries vary depending on their level of education, years of experience, and the size and industry of the company. They may also earn additional compensation in the form of bonuses and commissions.

  • Median Annual Salary: $105,000 ($50.48/hour)
  • Top 10% Annual Salary: $275,000 ($132.21/hour)

The employment of finance managers is expected to grow much faster than average over the next decade.

Demand for financial management services will increase as firms seek to improve their efficiency and productivity. In addition, demand for these workers will continue to come from outside the traditional finance function, such as human resources and information technology, as firms seek to improve their business operations.

Finance Manager Job Requirements

A finance manager typically needs to have the following qualifications:

Education: Finance managers are typically required to have a bachelor’s degree in finance, accounting or business administration. Some employers prefer to hire candidates who have a master’s degree in business administration (MBA). An MBA is typically preferred for senior finance positions.

Training & Experience: Most finance managers will receive on-the-job training when they start a new position. This training will help the finance manager learn the company’s specific processes and procedures. It will also help the finance manager learn the software and computer systems they will need to use on a daily basis.

Finance managers can also receive training through internships. During an internship, students will learn the basics of finance and accounting. They will also gain practical experience in the field. Students can complete internships during their undergraduate or graduate studies or during summer breaks.

Certifications & Licenses: Certifications enable professionals to prove their qualifications to current and future employers. Finance managers can earn certifications to gain more theoretical knowledge of their responsibilities, test their professional skills and further advance their career.

Finance Manager Skills

Finance managers need the following skills in order to be successful:

Accounting skills: Accounting skills are the foundation of finance management. Finance managers need to understand the ins and outs of accounting practices and procedures. They need to be able to read and interpret financial statements and other accounting documents. They also need to be able to understand the implications of different accounting practices and procedures.

Communication skills: Finance managers communicate with a variety of stakeholders, including investors, clients, colleagues and employees. They use their communication skills to convey complex financial information in a way that is easy to understand. Finance managers also use their communication skills to negotiate contracts, explain financial data and present financial information in a clear and concise manner.

Problem-solving skills: Finance managers are responsible for overseeing the financial health of a company. This means they are often called upon to find solutions to financial problems. Strong problem-solving skills can help finance managers find solutions to financial issues and maintain the company’s financial health.

Leadership skills: Finance managers are responsible for overseeing the financial health of an organization. This role requires strong leadership skills, as you may be responsible for managing a team of analysts and overseeing the company’s budget.

Business knowledge: Finance managers need to have a thorough understanding of business operations to make informed decisions about financial matters. They may be responsible for overseeing budgets, managing cash flow and analyzing data to make investment decisions. Finance managers may also be responsible for creating financial models to help businesses determine the viability of new projects.

Finance Manager Work Environment

The finance manager work environment is usually in an office setting, although travel may be required for business meetings or to visit clients. Finance managers typically work a standard 40-hour week, although they may have to work longer hours to meet deadlines or to handle unexpected problems. The work can be stressful, and finance managers must be able to handle pressure and maintain their composure in difficult situations. They must also be able to make quick decisions and solve problems quickly and efficiently.

Finance Manager Trends

Here are three trends influencing how finance managers work. Finance managers will need to stay up-to-date on these developments to keep their skills relevant and maintain a competitive advantage in the workplace.

The Need for More Technical Skills

As businesses become more complex, the need for finance managers with technical skills becomes increasingly important.

Finance managers are responsible for a wide range of tasks, including budgeting, accounting, and risk management. In order to be successful in this role, they need to have a deep understanding of the company’s finances and how they relate to other areas of the business.

By developing their technical skills, finance managers can better understand the data that is being produced by the latest technologies and make better decisions based on that information. This will allow them to play a more important role in the decision-making process of their companies.

The Emergence of Data Analytics

The emergence of data analytics as a trend in finance management is a result of the increasing importance of data in all aspects of business. As data becomes more central to decision making, finance managers will need to learn how to use it to their advantage.

Data analytics involves using software tools to extract insights from large amounts of data. These tools can help finance managers to better understand customer behavior, identify potential risks, and make better decisions about where to allocate resources.

A Greater Focus on Risk Management

Risk management is becoming an increasingly important focus for businesses across all industries. This is because businesses are realizing that they cannot afford to take risks when it comes to their finances; if they do, they may end up losing money or having their reputation damaged.

As a result, finance managers are going to need to develop strong risk management skills in order to keep their businesses safe. This includes knowing how to identify potential risks and come up with strategies to mitigate them.

How to Become a Finance Manager

A finance manager career can be a great way to advance your financial knowledge and skills. As you progress in your career, you may want to specialize in a particular area of finance, such as accounting, budgeting, or investment management. You could also choose to become a chief financial officer (CFO) or chief executive officer (CEO).

No matter what stage you’re at in your career, it’s important to keep learning and developing new skills. Take advantage of training opportunities offered by your employer, and attend industry conferences and workshops. Read the latest business news and articles, and stay up-to-date on the latest trends in finance.

Related: How to Write a Finance Manager Resume

Advancement Prospects

Finance managers typically advance in their careers by taking on increasingly responsible positions within their organization. As they gain experience and demonstrate their abilities, they may be promoted to positions such as director of finance or chief financial officer. In larger organizations, finance managers may specialize in a particular area, such as treasury, auditing, or risk management.

Finance managers who are interested in moving into executive positions may need to obtain an MBA or other advanced degree. They may also need to gain experience in other areas of business, such as marketing, operations, or human resources.

Finance Manager Job Description Example

At [CompanyX], we are looking for a Finance Manager who will be a key member of our team. The Finance Manager will be responsible for the financial planning and analysis of the company. This position will work closely with the CEO and other members of the executive team to develop and execute the company’s financial strategy. The Finance Manager will also be responsible for overseeing the accounting and finance team.

The ideal candidate for this position will have a strong background in financial planning and analysis, as well as experience leading a team. The candidate should also be a quick learner and have the ability to work in a fast-paced environment.

Duties & Responsibilities

  • Develop and maintain strong relationships with banks, investors, and other financial institutions
  • Negotiate loans, lines of credit, and other financing arrangements
  • Prepare monthly, quarterly, and annual reports detailing financial performance and forecasting future trends
  • Oversee the development and implementation of accounting policies and procedures
  • Ensure compliance with all relevant laws and regulations
  • Manage the budgeting and forecasting process
  • Develop and manage financial models to support decision-making
  • Identify cost-saving opportunities and implement process improvements
  • Lead and develop a team of finance professionals
  • Provide training and mentorship to junior staff
  • Stay abreast of developments in the field of finance and accounting
  • Perform ad hoc analysis as needed

Required Skills and Qualifications

  • Bachelor’s degree in business, accounting, finance, or related field
  • 10+ years experience in financial management, with at least 5 years in a supervisory role
  • Proven track record of successful financial planning and analysis
  • Strong understanding of GAAP and financial reporting regulations
  • Advanced Excel skills, including proficiency with financial modeling
  • Excellent communication, presentation, and interpersonal skills

Preferred Skills and Qualifications

  • MBA or other advanced degree in business or finance
  • CPA or other professional accounting certification
  • Experience working in a publicly-traded company
  • Experience with enterprise resource planning (ERP) systems
  • Working knowledge of data visualization tools, such as Tableau or Power BI

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