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Career Assessment Of Finance Managers Research Paper

Financial Manager's Career Description of Career

Qualifications Needed to Enter the Field

Salary and Benefits

Supply and Demand

Efforts of Technology on the Field

Other Factors

The financial manager plays a vital role of ensuring an organization is financially healthy. With the growth of the economy, this career is expected to continue being viable for several years to come. This is because finance managers can work in several industries and not just one that is specific. Some of the principal accountabilities of a finance manager include: budgeting, management, administration and supervision of funds and financial analysis. In addition, the career of a finance manager is appealing as one can advance into different positions in the organization, such as vice president of finance, finance director, Chief Financial officer (CFO) and senior finance manager. The minimum requirement for this career path is a Bachelor's degree in finance. Additional requirements include: a graduate in finance, economics or business administration and also professional certifications such as CFA. The median salary for the career of a financial manager is placed at $112,700 with the bottom-most paid financial manager earning less than $61,320, while the topmost paid financial manager amassing more than $187,199. The demand for finance managers surpasses the supply that is available in the job market.

Introduction

The career of a financial manager will without doubt be viable for the next decades and decades to come. I would definitely recommend someone to enter this field. This is largely because the financial manager plays a vital role in the organization. The financial manager is purposed to manage the organization's funds to ensure there is the maximization of returns on investment (Accounting Tools, 2015). In addition, the financial manager is expected to ensure that a fitting control system is instituted over the transference and investment of funds (Accounting Tools, 2015). In general, the financial manager is responsible for ensuring that the company is financially healthy. Finance is a field that has been there and is expected to exist for the furtherance and existence of an organization. Devoid of a financial manager, the organization can become financially unstable and end up becoming bankrupt and even obsolete.

Description of Career

Financial managers are accountable for the financial health of an organization. In particular, they generate financial reports, direct investment undertakings, and cultivate strategies and plans for the long-term financial objectives of their organization (Bureau of Labor Statistics, 2014).

The following are the principal responsibilities of a financial manager:

i. Management

The finance manager is tasked with maintaining a documented and acknowledged system of accounting procedures and practices. There is also the responsibility of administering the actions of the treasury division, together with the design of an organizational arrangement sufficient for attaining the department's aims and objectives. The finance manager is also accountable for managing any functions that have been outsourced (Accounting Tools, 2015).

ii. Financial Analysis

The finance manager is responsible for the vital role of the financial analysis of a company. One of the vital tasks in this regard is interpreting the organization's financial results to the senior management team and acclaim improvement activities. Taking part in analyzing cost reduction measure in all areas of the organization to ensure cost-effectiveness and profitability. Financial analysis also includes participating in benchmarking revisions to determine the areas of the company with potential operational enhancement. The finance manager does this in tandem with the appraisal of the competitors' performances and handing reports of major issues to the senior management. The finance manager is also responsible for the company's target costing practices to come up with products and services that are at par with the prearranged price objectives. In addition, after benchmark analysis, the finance manager offers assistance in ascertaining pricing of products with respect to features presented and rival company pricing. The finance manager is also liable for management of the capital budgeting procedure, centered on constraint breakdown and discounted cash flow analysis. Lastly, the finance manager is expected to collect and analyze important business metrics and present them to top management members (Accounting Tools, 2015).

iii. Budgeting The finance manager oversees and presents the annual financial budget of a company. Any variances from the original budget are highlighted by the financial manager and thereafter, presented to the top executives with the reasons for such variances. In addition, the finance manager is expected to help the management of the company in devising the general strategic way forward (Accounting Tools, 2015).

iv. Management and Investment of Funds

In general, the finance manager is responsible for predicting cash flow positions, associated borrowing necessitates, and the accessible funds for investment. The manager is tasked with investing the firm's funds. In addition, he or she is supposed to make sure that adequate funds are accessible...

The finance manager is also tasked with employing different techniques, such as hedging to alleviate financial risks associated with the interest rates on the business's borrowings, in addition to its foreign exchange situations. The finance manager determines the company's capital structure and this encompasses ascertaining and assembling debt and equity financing. Lastly, the finance manager vouches for suitable dividend issuances, centered on past dividend arrangements and projected cash flows (Accounting Tools, 2015).
There are several career paths of a finance manager in an organization with regard to promotions and professional advancement. According to PayScale (2015), finance managers might advance into high-paying job positions, such as vice president of finance. Other promotional positions for a finance manager include: Chief Financial Officer (CFO) and senior finance manager of an organization as illustrated in figure 1. However, in most instances, a finance director is the prevalent promotion for finance managers, while moving up the career ladder. One other characteristic, although less common, transition for financial managers is taking up the position of a financial controller (PayScale, 2015).

Financial Controller

Finance Director

Finance Manager

Vice President (VP), Finance

Chief Financial Officer

Senior Finance Manager

Figure 1: Common Career Paths of a Finance Manager

Qualifications Needed to Enter the Field

There are a number of career requirements that are necessitated in entering this career field. The initial step is to attain a Bachelor's Degree. This is considered the minimum education requirement for a finance manager and therefore is vital. Mostly, a Bachelor's Degree in finance is considered most suitable. Nonetheless, other educational majors might be satisfactory, if they encompass business, finance or management. It is advisable for students to attain an internship as it is a proper way of attaining work experience. Attaining a master's degree is also deemed vital in this career. This is largely because employers have a preference for personnel with advanced educational attainments. Acquiring a graduate degree can enhance and increase job prospects, and earning a graduate degree can improve job prospects and set in motion career development. The ideal graduate degree for a finance manager career is in the field of finance, economics or business administration (Study.com, 2015).

A third step is gaining work experience. In accordance to Bureau of Labor Statistics (2014), suitable work experience and references are vital for aspirant financial managers. Characteristically, these experts start their careers in interrelated positions, for instance, financial accounting or financial analysis. Financial managers are advanced employees in most establishments and might be endorsed from within. Corporations that employ external financial managers typically try to find candidates with proper experience from a comparable position. Any work experience associated with finance or corporate management can be accommodating (Bureau of Labor Statistics, 2014). Lastly, another qualification required in this career is professional certification. This attained certification can exhibit a high level of capability and proficiency. Several professional certifications are present, such as the Chartered Financial Analyst (CFA) term offered by the CFA Institute. Individuals with a bachelor's degree and with fitting work experience are eligible to undertake the three examinations that initiate the CFA qualification. Attaining certification is imperative as it may set in motion added job openings and career progression (Study.com, 2015).

Salary and Benefits

In accordance to the Bureau of Labor Statistics (2014), in 2012, the median annual salary for a financial manager stood at $109,740. In definition, the median salary is the wage payment at which 50% of the personnel in an occupation grossed more than that amount, and the other 50% grossed less. Statistics indicate that the bottom-most 10% grossed less than $59,630 annually, whereas the topmost 10% grossed more than $187,200. The figure below indicates the median yearly wages for financial managers in the best-ranked five industries where such managers operated in. In accordance to U.S. News (2015), in 2013, the median salary for the career of a financial manager increased and was placed at $112,700. The bottom-most paid financial manager was earning less than $61,320, while the topmost paid financial manager amassed more than $187,199 every year. Being a financial manager is ranked as being the best-paid career in the professional areas in the urbanite areas of large cities, such as San Francisco and New York.

Work Industry

Median Annual Wage

Professional, Scientific, and technical services

$130,120

Management of Companies and enterprises

$124,840

Finance and Insurance

$108,690

Manufacturing

$107,730

Government

$102,270

Figure 2: Median Yearly Wages for Financial Managers

Some of the benefits of the financial manager career are that in general, commissions constitute a great…

Sources used in this document:
Bibliography

Accounting Tools. (2015). Finance Manager Job Description. Retrieved November 8, 2015 from:http://www.accountingtools.com/finance-manager-job-descriptio

Allahyari, A., & Ramazani, M. (2011). Firm Technological Change and its Effects on Management Accounting Change (Case study of Iranian Manufacturing Firms). Global Journal of Management and Business Research,11(9).

Bureau of Labor Statistics. (2014). U.S. Department of Labor, Occupational Outlook Handbook, 2014-15 Edition. Financial Managers. Retrieved November 8, 2015 from: http://www.bls.gov/ooh/management/financial-managers.htm

Effects of Information Technology on Financial Services Systems (Washington, D. C.: U.S. Congress, Office of Technology Assessment, OTA-CIT-202, September 1984).
PayScale. (2015). Finance Manager Salary. Retrieved November 8, 2015 from:http://www.payscale.com/research/U.S./Job=Finance_Manager/Salary
Study.com. (2015). How to Become a Financial Manager: Education and Career Roadmap. Retrieved November 8, 2015 from:http://study.com/articles/How_to_Become_a_Financial_Manager_Education_and_Career_Roadmap.html
U.S News. (2015). Financial Manager: Salary. Retrieved November 8, 2015 from:http://money.usnews.com/careers/best-jobs/financial-manager/salary
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