Pros and Cons of a Career as a Finance Manager
Finance managers supervise a business's cash flow, overlook loan applications, write financial reports and oversee the approval and the rejection of lines of credit. Read some more pros and cons of the profession to find out of its right for you.
| Pros of Being a Finance Manager |
|---|
| High salary (median annual wages of $115,320 in 2014)* |
| Bachelor's degree can be sufficient education for some positions* |
| Can work in various settings (healthcare, government, business and scientific services)* |
| Cons of Being a Finance Manager |
|---|
| Just average job growth overall (projected nine percent from 2012-2022)* |
| Many employers prefer a master's degree* |
| Some jobs require extensive experience (3-7 years)** |
Source: *U.S. Bureau of Labor Statistics, **Job Postings on Careerbuilder.com.
Essential Career Information
Job Description and Duties
Financial managers help set financial goals, study financial data and manage employees in the financial department. Finance managers can also offer advice to managers about how to increase revenue. They are expected to be knowledgeable about duties specific to their particular industry, such as government or healthcare. A finance manager may be designated under several different titles, including credit manager, controller, finance officer, risk manager and cash manager.
Credit managers are in charge of setting credit limits, collecting past-due accounts and creating criteria for credit-ratings. Finance officers supervise investments, help businesses to expand and plan acquisitions and mergers. Cash managers analyze how funds flow in and out of a company in order to make sure that the company's financial goals are being met. Controllers assist with such financial reports as balance sheets, income statements and expense reports.
Career Prospects & Salary Info
From 2012-2022, the U.S. Bureau of Labor Statistics (BLS) stated that finance managers overall were predicted to experience a nine percent employment growth, which is relatively equal to the average of other occupations. Those working in credit intermediation roles were expected to see a meager increase in job growth of 5%. In 2014, the BLS stated that financial managers earned a median annual salary of about $115,320.
What Are the Requirements?
Education and Experience
A bachelor's degree in a subject like financial management, accounting, business administration or accounting is typically the minimum requirement for a career in financial management. While enrolled in a financial management program, courses could focus on marketing fundamentals, capital management, financial planning, business law, microeconomics and insurance planning. Business administration programs may instruct students on statistics, business finance, strategic management and income taxation.
Relevant work experience is commonly required if you want to be considered for a management position. As an aspiring finance manager, you may want to consider gaining experience in another financial occupation, such as accountant, financial analyst or loan officer. Additionally, a master's degree is becoming preferred among employers of financial managers.
Useful Skills
Individuals hoping to become financial managers should have knowledge of customer service as well as sales and marketing. Other useful skills could include areas like:
- Mathematics
- Organization
- Management
- Attention to detail
- Decision-making
What Employers Are Looking For
Employers are commonly looking for finance managers that have at least a bachelor's degree and have about 3-7 years of relevant work experience. Some form of industry certification could be required, and a master's degree could be preferred. Following are job positions open in May 2012:
- A client in Austin, TX, posted for an experienced finance manager to review, analyze and ensure the accuracy of the financial and statistical reports. You would also manage the budget, coordinate audits, prepare financial statements and coordinate the work of the staff. For this position, an Master of Business Administration (MBA) was preferred, along with 3-5 years of experience and a Certified Public Accountant (CPA) credential.
- A chemical and utility company in San Leon, TX, advertised for a senior financial manager with several years of experience. Responsibilities would include the improvement and implementation of financial and management information systems, as well as working with regional and local general managers. A bachelor's degree and proficiency in Microsoft Excel were required.
- A publicly-traded company in Baton Rouge, LA, advertised for a full-time finance manager who would be responsible for retrieving data from the company's integrated data repository and other company supported databases, and developing analytical tools, models and reports that support daily, weekly, monthly and ongoing plan management activities. At least a bachelor's degree in finance or accounting was required, but an MBA was preferred.
How to Stand Out in the Field
According to the BLS, a financial manager with a master's degree and certification will have the best job prospects. Having a Master of Business Administration (MBA) or a master's degree in economics, business administration or accounting is preferred by many employers and could help you advance in the field.
Although certification as a Chartered Financial Analyst (CFA) through The CFA Institute isn't mandatory, this certification is sought by some professionals in the field. Certification as a CPA might be preferred or required by some employers. In almost all states, this certification requires you to have completed at least 150 credit hours of postsecondary coursework. This can be completed through a master's degree, but a master's degree isn't mandatory. Additionally, the Association of Government Accountants (AGA) offers the Certified Government Financial Manager certification.
Other Career Paths
Accountant
If you want to work in finance but you aren't interested in management duties, you may consider becoming an accountant. Accountants review financial records, prepare tax returns and offer financial advice to clients and employers. Accountants can work with the government, make sure that an organization's money is being used properly, handle financial records and may also have their own business. A bachelor's degree in accounting is typically all that's required for such a position, though CPA certification and a master's degree may sometimes be required. In 2011, reported that accountants and auditors together earned a median annual salary of about $63,000. From 2010-2020, they were expected to see an average job growth of about 16%.
Top Executive
If you're interested in high salaries and the responsibilities of managing others, then you might consider becoming a top executive, such as a chief financial officer. These professionals are expected to see a slower-than-average job growth of five percent from 2010-2020, but in 2011, the BLS reported that chief executives earned a median annual salary of about $167,000. These professionals typically need a bachelor's degree in a field of business and several years of work experience, though master's degrees are becoming more common.
