Financial Managers Show
Please enable javascript to play this video. Video transcript available at https://www.youtube.com/watch?v=8ATMziMJ1fw. Financial managers create financial reports, direct investment activities, and develop plans for the long-term financial goals of their organization. Financial managers work in many industries, including banks,
investment firms, and insurance companies. Most financial managers work full time, and some work more than 40 hours per week. Financial managers typically need a bachelor’s degree and 5 years or more of experience in another business or financial occupation, such as
accountant, securities sales agent, or
financial analyst. The median annual wage for financial managers was $131,710 in May 2021. Employment of financial managers is projected
to grow 17 percent from 2021 to 2031, much faster than the average for all occupations. About 71,300 openings for financial managers are projected each year, on average, over the decade. Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire. Explore
resources for employment and wages by state and area for financial managers. Compare the job duties, education, job growth, and pay of financial managers with similar occupations. Learn more about financial managers
by visiting additional resources, including O*NET, a source on key characteristics of workers and occupations.
Financial managers perform data analysis and advise senior managers on profit-maximizing ideas. Financial managers are responsible for the financial health of an organization. They create financial reports, direct investment activities, and develop plans for the long-term financial goals of their organization. DutiesFinancial managers typically do the following:
Financial managers spend much of their time analyzing data and advising senior managers on ways to maximize profits. They often work on teams, acting as advisors to top executives. Financial managers must have knowledge of the topics, tax laws, and regulations that are specific to their organization or industry. For example, government financial managers must be experts on appropriations and budgeting processes; healthcare financial managers must understand billing, reimbursement, and other business matters related to healthcare. The following are examples of types of financial managers: Controllers direct the preparation of financial reports that summarize and forecast an organization’s financial position. These reports may include income statements, balance sheets, and analyses of future earnings or expenses. Controllers also are in charge of preparing reports required by governmental agencies that regulate businesses. Often, controllers oversee the accounting, audit, and budget departments of their organization. Treasurers and finance officers direct an organization’s budgets to meet its financial goals. They oversee investments and other plans to raise capital, such as issuing stocks or bonds, to support their organization’s growth. They also develop financial plans for mergers (two companies joining together) and acquisitions (one company buying another). Credit managers oversee an organization’s credit business. They set credit-rating standards, determine credit limits, and monitor the collections of past-due accounts. Cash managers monitor and control the flow of money into and out of an organization to meet business and investment needs. For example, they must project whether the organization will have a shortage or surplus of cash. Risk managers use strategies to limit or offset an organization’s chance of financial loss or exposure to financial uncertainty. Among the risks they try to limit are those arising from currency or commodity price changes. Insurance managers decide how to limit an organization’s losses by protecting against risks, such as for disability payments to an employee who gets hurt on the job or for costs imposed by a lawsuit against the organization.
Financial managers work closely with top managers and with departments that develop the data that financial managers need. Financial managers held about 730,800 jobs in 2021. The largest employers of financial managers were as follows:
Financial managers work closely with top executives and with departments that develop data needed for analysis. Work SchedulesMost financial managers work full time, and some work more than 40 hours per week.
Financial managers usually have experience in another business or financial occupation such as a loan officer, accountant, auditor, securities sales agent, or financial analyst. Financial managers typically need a bachelor’s degree and 5 years or more of experience in another business or financial occupation, such as an accountant, securities sales agent, or financial analyst. EducationFinancial managers typically need at least a bachelor's degree in business, economics, or a related field. These disciplines help students learn analytical skills and methods. Licenses, Certifications, and RegistrationsAlthough it is not required, professional certification indicates competence for financial managers who have it. The Association of Government Accountants (AGA) offers the Certified Government Financial Manager (CGFM) designation to financial managers working with federal, state, or local government. To earn this certification, candidates must have a bachelor’s degree from an accredited college or university, pass examinations, and have professional-level experience in government financial management. To keep the certification, CGFMs must complete continuing professional education. The CFA Institute confers the Chartered Financial Analyst (CFA) certification to investment professionals who have at least a bachelor’s degree or 4 years of work experience, or a combination of experience and education, and who pass three exams. The Association for Financial Professionals confers the Certified Treasury Professional (CTP) credential to those who have at least 2 years of relevant experience or 1 year of experience and a graduate degree in business, finance, or a related field. This association also confers the Certified Corporate Financial Planning Analysis Professional (FP&A) credential to those who have a bachelor’s degree or who are currently enrolled in an undergraduate program with a finance-related major and will graduate within 2 years. Both credentials require passing an exam. Certified public accountants (CPAs) are licensed by their state’s board of accountancy and must pass an exam administered by the American Institute of Certified Public Accountants (AICPA). Work Experience in a Related OccupationFinancial managers usually have experience in another business or financial occupation. For example, they may have worked as a loan officer, accountant, securities sales agent, or financial analyst. In some cases, companies provide management training to help prepare motivated, skilled financial workers to become managers. AdvancementExperienced financial managers may advance to become chief financial officers (CFOs). These executives are responsible for the accuracy of an organization’s financial reporting. Important QualitiesAnalytical skills. To assist executives in making decisions, financial managers need to evaluate data and information that affects their organization. Communication skills. Financial managers must be able to explain and justify complex financial transactions. Detail oriented. In preparing and analyzing reports, such as balance sheets and income statements, financial managers must be precise and attentive to their work in order to avoid errors. Math skills. Financial managers need strong skills in certain branches of mathematics, including algebra. Ability to understand international finance and complex financial documents also is important. Organizational skills. Because financial managers deal with a range of information and documents, they must have structures in place to be effective in their work. Median annual wages, May 2021 The median annual wage for financial managers was $131,710 in May 2021. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $77,040, and the highest 10 percent earned more than $208,000. In May 2021, the median annual wages for financial managers in the top industries in which they worked were as follows:
Most financial managers work full time, and some work more than 40 hours per week. Percent change in employment, projected 2021-31 Employment of financial managers is projected to grow 17 percent from 2021 to 2031, much faster than the average for all occupations. About 71,300 openings for financial managers are projected each year, on average, over the decade. Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire. EmploymentServices provided by financial managers, such as planning, directing, and coordinating investments, are likely to stay in demand as the economy grows. In addition, several specialties within financial management, particularly cash management and risk management, are expected to be in high demand over the decade. Companies, particularly those with operations in foreign countries, have accumulated more cash on their balance sheets in recent years. As globalization continues, this trend is likely to persist. This practice should lead to demand for financial managers, as companies will need expertise in managing cash. There has been an increased emphasis on risk management within the financial industry, and this trend is expected to continue. Banking institutions are expected to emphasize stability and managing risk over profits. This emphasis is expected to lead to employment growth for risk managers. Employment projections data for financial managers, 2021-31
The Occupational Employment and Wage Statistics (OEWS) program produces employment and wage estimates annually for over 800 occupations. These estimates are available for the nation as a whole, for individual states, and for metropolitan and nonmetropolitan areas. The link(s) below go to OEWS data maps for employment and wages by state and area. Occupational employment projections are developed for all states by Labor Market Information (LMI) or individual state Employment Projections offices. All state projections data are available at www.projectionscentral.com. Information on this site allows projected employment growth
for an occupation to be compared among states or to be compared within one state. In addition, states may produce projections for areas; there are links to each state’s websites where these data may be retrieved. CareerOneStop includes hundreds of occupational profiles
with data available by state and metro area. There are links in the left-hand side menu to compare occupational employment by state and occupational wages by local area or metro area. There is also a salary info tool to search for wages by zip code. Similar Occupations About this sectionThis table shows a list of occupations with job duties that are similar to those of financial managers.
Last Modified Date: Thursday, September 8, 2022 What questions are addressed by financial managers?The three major questions that a financial manager addresses:. Long-term decisions: The first major problem for him/her relates to long-term decisions. ... . Problem-related to the source of funds to be raised: Another problem with the firm is determining the sources of funds.. Which one of the following actions by a financial manager is the most likely to create an agency problem quizlet?Which one of the following actions by a financial manager is most apt to create an agency problem? Increasing current profits when doing so lowers the value of the firm's equity.
Which of the following is not a role of a financial manager?The correct answer is (c) because internal control is a function of the controller s office. Answers (a), (b), and (d) are incorrect because the functions of financial management include: financing, capital, budgeting, financial management, corporate governance, and risk management.
What are the 3 basic functions of a finance manager?Key responsibilities of a Financial Manager
Allocation of Funds. Profit Planning. Understanding Capital Markets.
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Which one of the following questions is least likely to be addressed by financial managers?
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