Financial Managers: Salary, career path, job outlook, education and more
- Education Required
- A bachelor's degree in finance, accounting, economics, or business administration is often the minimum education needed for financial managers. However, many employers now seek candidates with a masters degree, preferably in business administration, finance, accounting, or economics. These academic programs help students develop analytical skills and learn financial analysis methods and software.
- Job Outlook
The projected percent change in employment from 2016 to 2026: 19% (Much faster than average)
(The average growth rate for all occupations is 7 percent.)
- Experienced financial managers can advance to become chief financial officers (CFOs). These executives are responsible for the accuracy of an entire companys or organizations financial reporting.
- Although professional certification is not required, some financial managers still get it to demonstrate a level of competence. The CFA Institute confers the Chartered Financial Analyst (CFA) certification to investment professionals who have at least a bachelors degree, 4 years of work experience, and pass three exams. The Association for Financial Professionals confers the Certified Treasury Professional credential to those who pass an exam and have a minimum of 2 years of relevant experience. Certified public accountants (CPAs) are licensed by their states board of accountancy and must pass an exam administered by the American Institute of Certified Public Accountants (AICPA).
- Median pay: How much do Financial Managers make?
- $121,750 Annual Salary
- $58.54 per hour
Financial managers are responsible for the financial health of an organization. They produce financial reports, direct investment activities, and develop strategies and plans for the long-term financial goals of their organization.
What do Financial Managers do?
Financial managers typically do the following:
- Prepare financial statements, business activity reports, and forecasts
- Monitor financial details to ensure that legal requirements are met
- Supervise employees who do financial reporting and budgeting
- Review company financial reports and seek ways to reduce costs
- Analyze market trends to maximize profits and find expansion opportunities
- Help management make financial decisions
The role of the financial manager, particularly in business, is changing in response to technological advances that have substantially reduced the amount of time it takes to produce financial reports. Financial managers main responsibility used to be monitoring a companys finances, but they now do more data analysis and advise senior managers on ways to maximize profits. They often work on teams, acting as business advisors to top executives.
Financial managers also do tasks that are specific to their organization or industry. For example, government financial managers must be experts on government appropriations and budgeting processes, and healthcare financial managers must know about topics in healthcare finance. Moreover, financial managers must be knowledgeable about special tax laws and regulations that affect their industry.
The following are examples of types of financial managers:
Careers for Financial Managers
- Bank managers
- Banking center managers
- Cash managers
- City comptrollers
- City treasurers
- Controllers, financial
- Credit managers
- Finance officers
- Financial controllers
- Financial directors
- Fiscal managers
- Insurance managers
- International bank managers
- Residential mortgage managers
- Risk and insurance managers
- Risk managers