One of a firm’s most significant and difficult activities is its financial activity. So, a financial manager takes all the necessary financial actions to take care of these tasks. However, this article will tell you what you need to know about a finance manager, their job description, salary, personal finance manager, and how to become a finance manager.
Finance Manager
Financial managers are in charge of keeping an eye on the finances of large companies, government bodies, and everything in between. Along with their teams, they are in charge of accounting and make financial reports, cash-flow statements, and profit forecasts. To follow the many laws and rules, they have to pay close attention to the details. Not only do financial managers work with numbers, but they also have to help other people in their company understand their complicated reports. This takes a lot of communication skills.
The job market for financial managers is tough. People who can also handle foreign finance and the increasingly complicated world of financial instruments and securities, such as derivatives, will be the most marketable.
Read Also: 5 Skills Finance Managers Must Hone to Survive in The Industry
Salary of a Finance Manager
As of June 26, 2023, the average Finance Manager salary in the United States was $129,109, with a usual range of $115,552 to $146,489. Salary ranges can be very different depending on many important factors, such as education, certifications, extra skills, and the number of years you have worked in your area.
What Are the Top 10 Highest Paying Cities for Finance Manager Jobs?
We’ve found 10 cities where a Finance Manager’s median salary is higher than the national average. Livermore, California, Sunnyvale, California, and Vacaville, California, are the top three places on the list. Vacaville, CA, is $28,067 (22.8%) above the national average, and Sunnyvale, CA, is another $34,128 (27.7%) above the average of $123,072.
Since the average salaries in these 10 cities are better than the national average, it seems like a Finance Manager could make a lot of money by moving to a different city.
Lastly, another thing to think about is that the average salary for these top ten places doesn’t change much from Sunnyvale, CA, to New York City, NY. This shows that wages don’t have much room to grow. When thinking about location and salary for a Finance Manager position, the chance of a lower cost of living may be the best thing to consider.
What Are the Top 5 Best Paying Related Finance Manager Jobs in the U.S.?
We found at least five Finance Manager-related jobs that pay more per year than the average Finance Manager salary. Top examples of these positions include Vice President of Finance, Vice President of Finance Technology, and Vice President of Finance.
It’s important to note that all of these positions pay between $40,655 (33%) and $40,655 (33%) more per year than the $123,072 median salary for finance managers. If you’re qualified, getting hired for one of these linked Finance Manager jobs could help you make more money than the average Finance Manager job.
Read Also: FINANCIAL MANAGER: Meaning, Duties, Salary, Roles & Personal Manager
Job Description of a Finance Manager
A Financial Manager is a key person who is in charge of making sure that an organization’s finances are in good shape. They do accurate data analysis and give senior management tips on how to maximize profits and make sure the company will be successful in the long run. Here is the job description for a finance manager:
#1. Job Brief
We’re looking for a trustworthy Financial Manager who can look at day-to-day financial activities and then give help and direction to upper management on how to plan for the future.
The goal is to help the leaders of the company make good business choices and reach their goals. In this position, you’ll be able to use your skills in financial analysis and strategy planning. By carefully analyzing day-to-day financial activities, you will be able to give upper management useful insights and suggestions.
Your advice will help the company’s leaders make smart decisions that are in line with the long-term goals of the business. You will also be very important in making and putting into action financial plans that help the company grow and make money.
You will have to keep an eye on financial performance, find places where things could be better, and take advantage of chances.
#2. Responsibilities
Here are the responsibilities of a finance manager in this job description:
- Provide financial reports and explanations of financial information to management staff while making suggestions for what to do next.
- Give advice on how the company should spend and what strategies it should use.
- Maintain the organization’s financial health.
- Compare the company’s real expenses, costs, variable contributions, sales numbers, and performance to what was planned in the business plan.
- Make financial trends and predictions for the company.
- Do reviews and analyses to find ways to save money.
- Oversee how the finance department works, set goals and targets, and make a plan for how to reach these goals.
- Manage the company’s budget.
- Liaise with auditors to guarantee proper financial oversight of the organization.
- Communicate with other departments to talk about company goals and agree on how to move forward.
#3. Requirements and Skills
- Proven knowledge as a financial manager. knowledge in the financial industry, with jobs like financial analyst.
- A deep understanding of both the financial trends in the company and the trends in the market as a whole
- Strong interpersonal, communication, and presentation skills. Able to use financial tools well.
- Capable of managing, guiding, and leading personnel to ensure proper financial practices are followed
- A solid comprehension of all laws and rules set by the government
- BS or MA in Economics, Accounting, or Finance
- Professional qualifications like CFA, CPA, or something similar will be a plus.
Read Also: MANAGERIAL ACCOUNTING SOFTWARE: Best Accounting Software In 2023
Personal Finance Manager
A personal finance manager is an expert in customized and personalized financial management. They are experts who help you figure out how to handle your money. This means making plans for your investments, spending, insurance, and taxes.
Personal finance managers evaluate your present financial situation and devise a strategy to assist you achieve your financial objectives. Assume your financial aim is to buy a home in a few years. To reach this goal, you need to make sure your finances are in good shape. A personal finance manager helps you plan and spend in a way that helps you reach this important goal.
A personal finance manager helps you create a plan for making your dreams come true. They tell you how much money you should save, what kinds of accounts you should choose, what kinds of investments you should make, and a lot more. In addition to helping you plan your finances, they also look out for you and your family by encouraging you to buy health and term insurance and setting up a fund you can use in case of an accident.
When you hire a personal finance manager, you also get an investment plan that is tailored to your specific needs. Such a plan is based completely on your current financial situation, including your ability to pay, your preferred investment instruments, your assets that can be invested, and so on. A personal finance manager keeps an eye on your money and makes changes to your financial plan as needed to make sure you don’t lose sight of your financial goals. Your ability to analyze your spending habits and reduce wasteful spending is another benefit of routine monitoring.
What Does a Personal Finance Manager Do?
Personal finance managers have a lot more responsibilities than they might seem to have at first glance. They do many things to fully understand your financial goals and come up with the best plan.
#1. Understanding Your Financial Health
The first thing that all personal finance managers do is look at your current financial situation and try to figure out what’s going on. Your present financial situation is a key part of both short-term and long-term planning. Your personal finance manager may ask you to fill out a form about your financial health. This questionnaire is made to answer all of your questions. There will be questions about how much money you have, what assets you own, and what debts you owe. Make sure you answer all of these questions correctly so the finance manager can decide how to spend your money.
#2. Creating a Financial Plan
After you fill out the financial assessment, a personal finance manager will start using all the information you gave them. They make a plan for your money based on what you can afford. They organize your money so you can save more and spend less on things you don’t need. They come up with plans for investments, ways to save money on taxes, and how to divide up assets to make the most money overall.
#3. Implementing the Plan of Action
Personal finance planners not only help you plan your finances, but they also make sure that the investments you plan to make are done correctly and as soon as possible (taking the movements of the market into account). The key to good financial planning is putting ideas into action in the right way. During the execution phase, you should not just blindly follow the advice given. Before the asset allocation process starts, make sure you ask the right questions and bring up any worries you have.
#4. Regularly Monitoring Your Finances
A big part of a personal finance manager’s job is to keep an eye on your funds on a regular basis. They look at your account every once in a while and make suggestions for new investments and when to cash them out. Basically, they check to see if the financial plans they suggest are good for you. Your personal finance manager can make changes to your investment plans on a regular basis and pay more attention to areas that need it.
How to Become a Financial Manager
Think about these steps to become a financial manager:
#1. Complete High School
To become a financial manager, you need a high school education or something similar. Employers usually want you to have at least a bachelor’s degree in a finance-related area, so you might want to take business and economics classes and different math classes. You might also be able to join business or finance clubs in high school, which can help you get ready for the work you’ll do in your major program in college.
#2. Get a Degree
Explore your degree possibilities at the college or university of your choice and think about majoring in finance, accounting, business administration, economics, or a related field. Financial managers often need one of these degrees in order to get a job. When you list your schooling
on your resume, you might want to include some of the most relevant classes for the job, such as securities, financial planning, microeconomics, and general business.
#3. Gain Experience in the Field
Many financial managers start out as accountants, auditors, or financial analysts, where they work closely with clients and gain experience. Accountants help businesses keep track of their records and make financial statements. Auditors look at the financial records of businesses, government agencies, and other organizations to make sure that all transactions are recorded correctly according to generally accepted accounting principles (GAAP).
Is a Finance Manager an Accountant?
Most people in charge of money are certified (or at least partially certified) accountants. To become qualified, you must pass (or be excused from) a set of professional examinations and complete a period of practical training.
What Position Is Under Finance Manager?
A small business’s financial structure usually includes a chief financial officer, a management accountant, a financial accountant, an internal auditor, a credit controller, and an accounts payable accountant.
What Is the Difference Between Accounting Manager and Finance Manager?
In short, an accounting manager is in charge of the day-to-day finances of a company, while a finance manager is more concerned with long-term planning and managing risks. There are also some jobs that overlap, and people who start out in both roles often have the same qualifications.
Do You Need Accounting to Be a Financial Manager?
You need a degree in business, accounting, or economics. While a master’s degree in any of these subjects is not required, it can make you more marketable throughout your job search.
What Are the Five Principles of Finance?
Cash flow is what matters, money has a duration of value, risk needs a reward, market pricing is usually accurate, and agency conflicts of interest produce issues.
References
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