Financial Manager

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Job Outlook:
Much faster than average
Education: Bachelor's degree
Work From Home
Salary
High: $203,720.00
Average: $166,050.00
Hourly
Average: $79.83

What they do:

Plan, direct, or coordinate accounting, investing, banking, insurance, securities, and other financial activities of a branch, office, or department of an establishment.

On the job, you would:

  • Establish and maintain relationships with individual or business customers or provide assistance with problems these customers may encounter.
  • Oversee the flow of cash or financial instruments.
  • Plan, direct, or coordinate the activities of workers in branches, offices, or departments of establishments, such as branch banks, brokerage firms, risk and insurance departments, or credit departments.

Important Qualities

Analytical 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.

Personality

A3 Your Strengths Importance

Characteristics of this Career

92% Attention to Detail  -  Job requires being careful about detail and thorough in completing work tasks.
89% Integrity  -  Job requires being honest and ethical.
87% Leadership  -  Job requires a willingness to lead, take charge, and offer opinions and direction.
87% Cooperation  -  Job requires being pleasant with others on the job and displaying a good-natured, cooperative attitude.
83% Dependability  -  Job requires being reliable, responsible, and dependable, and fulfilling obligations.
83% Concern for Others  -  Job requires being sensitive to others' needs and feelings and being understanding and helpful on the job.
80% Stress Tolerance  -  Job requires accepting criticism and dealing calmly and effectively with high-stress situations.
80% Analytical Thinking  -  Job requires analyzing information and using logic to address work-related issues and problems.
79% Adaptability/Flexibility  -  Job requires being open to change (positive or negative) and to considerable variety in the workplace.
77% Self-Control  -  Job requires maintaining composure, keeping emotions in check, controlling anger, and avoiding aggressive behavior, even in very difficult situations.
77% Initiative  -  Job requires a willingness to take on responsibilities and challenges.
76% Achievement/Effort  -  Job requires establishing and maintaining personally challenging achievement goals and exerting effort toward mastering tasks.
76% Independence  -  Job requires developing one's own ways of doing things, guiding oneself with little or no supervision, and depending on oneself to get things done.
75% Social Orientation  -  Job requires preferring to work with others rather than alone, and being personally connected with others on the job.
73% Persistence  -  Job requires persistence in the face of obstacles.
68% Innovation  -  Job requires creativity and alternative thinking to develop new ideas for and answers to work-related problems.
A3 Your Strengths Importance

Strengths

100% Enterprising  -  Work involves managing, negotiating, marketing, or selling, typically in a business setting, or leading or advising people in political and legal situations. Enterprising occupations are often associated with business initiatives, sales, marketing/advertising, finance, management/administration, professional advising, public speaking, politics, or law.
67% Conventional  -  Work involves following procedures and regulations to organize information or data, typically in a business setting. Conventional occupations are often associated with office work, accounting, mathematics/statistics, information technology, finance, or human resources.
A3 Your Strengths Importance

Values of the Work Environment

83% Working Conditions  -  Occupations that satisfy this work value offer job security and good working conditions. Corresponding needs are Activity, Compensation, Independence, Security, Variety and Working Conditions.
83% Independence  -  Occupations that satisfy this work value allow employees to work on their own and make decisions. Corresponding needs are Creativity, Responsibility and Autonomy.
78% Recognition  -  Occupations that satisfy this work value offer advancement, potential for leadership, and are often considered prestigious. Corresponding needs are Advancement, Authority, Recognition and Social Status.
72% Achievement  -  Occupations that satisfy this work value are results oriented and allow employees to use their strongest abilities, giving them a feeling of accomplishment. Corresponding needs are Ability Utilization and Achievement.
67% Relationships  -  Occupations that satisfy this work value allow employees to provide service to others and work with co-workers in a friendly non-competitive environment. Corresponding needs are Co-workers, Moral Values and Social Service.
67% Support  -  Occupations that satisfy this work value offer supportive management that stands behind employees. Corresponding needs are Company Policies, Supervision: Human Relations and Supervision: Technical.

Aptitude

A3 Your Strengths Importance

Abilities | Cognitive, Physical, Personality

78% Oral Comprehension  -  The ability to listen to and understand information and ideas presented through spoken words and sentences.
78% Written Comprehension  -  The ability to read and understand information and ideas presented in writing.
78% Oral Expression  -  The ability to communicate information and ideas in speaking so others will understand.
75% Speech Clarity  -  The ability to speak clearly so others can understand you.
75% Deductive Reasoning  -  The ability to apply general rules to specific problems to produce answers that make sense.
72% Written Expression  -  The ability to communicate information and ideas in writing so others will understand.
72% Inductive Reasoning  -  The ability to combine pieces of information to form general rules or conclusions (includes finding a relationship among seemingly unrelated events).
72% Problem Sensitivity  -  The ability to tell when something is wrong or is likely to go wrong. It does not involve solving the problem, only recognizing that there is a problem.
69% Information Ordering  -  The ability to arrange things or actions in a certain order or pattern according to a specific rule or set of rules (e.g., patterns of numbers, letters, words, pictures, mathematical operations).
69% Near Vision  -  The ability to see details at close range (within a few feet of the observer).
69% Speech Recognition  -  The ability to identify and understand the speech of another person.

Job Details

Responsibilities
Establish interpersonal business relationships to facilitate work activities.
Supervise employees.
Direct financial operations.
Recruit personnel.
Prepare operational progress or status reports.
Analyze financial records to improve budgeting or planning.
Direct organizational operations, projects, or services.
Analyze financial records to improve budgeting or planning.
Approve expenditures.
Direct financial operations.
Monitor flow of cash or other resources.
Prepare financial documents, reports, or budgets.
Prepare reports related to compliance matters.
Maintain regulatory or compliance documentation.
Analyze forecasting data to improve business decisions.
Communicate organizational information to customers or other stakeholders.
Analyze financial records to improve efficiency.
Recommend organizational process or policy changes.
Analyze risks to minimize losses or damages.
Establish interpersonal business relationships to facilitate work activities.
Analyze financial records or reports to determine state of operations.
Determine pricing or monetary policies.
Develop operating strategies, plans, or procedures.
Direct financial operations.
Analyze financial records or reports to determine state of operations.
Negotiate sales or lease agreements for products or services.
Coordinate operational activities with external stakeholders.
A3 Your Strengths Importance

Attributes & Percentage of Time Spent

100% Electronic Mail  -  How often do you use electronic mail in this job?
98% Face-to-Face Discussions  -  How often do you have to have face-to-face discussions with individuals or teams in this job?
94% Work With Work Group or Team  -  How important is it to work with others in a group or team in this job?
93% Indoors, Environmentally Controlled  -  How often does this job require working indoors in environmentally controlled conditions?
92% Importance of Being Exact or Accurate  -  How important is being very exact or highly accurate in performing this job?
90% Telephone  -  How often do you have telephone conversations in this job?
89% Time Pressure  -  How often does this job require the worker to meet strict deadlines?
88% Responsibility for Outcomes and Results  -  How responsible is the worker for work outcomes and results of other workers?
88% Impact of Decisions on Co-workers or Company Results  -  What results do your decisions usually have on other people or the image or reputation or financial resources of your employer?
86% Structured versus Unstructured Work  -  To what extent is this job structured for the worker, rather than allowing the worker to determine tasks, priorities, and goals?
86% Spend Time Sitting  -  How much does this job require sitting?
84% Importance of Repeating Same Tasks  -  How important is repeating the same physical activities (e.g., key entry) or mental activities (e.g., checking entries in a ledger) over and over, without stopping, to performing this job?
82% Frequency of Decision Making  -  How frequently is the worker required to make decisions that affect other people, the financial resources, and/or the image and reputation of the organization?
80% Contact With Others  -  How much does this job require the worker to be in contact with others (face-to-face, by telephone, or otherwise) in order to perform it?
78% Freedom to Make Decisions  -  How much decision making freedom, without supervision, does the job offer?
71% Coordinate or Lead Others  -  How important is it to coordinate or lead others in accomplishing work activities in this job?
87% Duration of Typical Work Week  -  Number of hours typically worked in one week.
A3 Your Strengths Importance

Tasks & Values

84% Working with Computers  -  Using computers and computer systems (including hardware and software) to program, write software, set up functions, enter data, or process information.
83% Establishing and Maintaining Interpersonal Relationships  -  Developing constructive and cooperative working relationships with others, and maintaining them over time.
82% Communicating with Supervisors, Peers, or Subordinates  -  Providing information to supervisors, co-workers, and subordinates by telephone, in written form, e-mail, or in person.
82% Processing Information  -  Compiling, coding, categorizing, calculating, tabulating, auditing, or verifying information or data.
81% Getting Information  -  Observing, receiving, and otherwise obtaining information from all relevant sources.
81% Evaluating Information to Determine Compliance with Standards  -  Using relevant information and individual judgment to determine whether events or processes comply with laws, regulations, or standards.
81% Making Decisions and Solving Problems  -  Analyzing information and evaluating results to choose the best solution and solve problems.
79% Coaching and Developing Others  -  Identifying the developmental needs of others and coaching, mentoring, or otherwise helping others to improve their knowledge or skills.
77% Guiding, Directing, and Motivating Subordinates  -  Providing guidance and direction to subordinates, including setting performance standards and monitoring performance.
76% Organizing, Planning, and Prioritizing Work  -  Developing specific goals and plans to prioritize, organize, and accomplish your work.
75% Coordinating the Work and Activities of Others  -  Getting members of a group to work together to accomplish tasks.
74% Analyzing Data or Information  -  Identifying the underlying principles, reasons, or facts of information by breaking down information or data into separate parts.
70% Updating and Using Relevant Knowledge  -  Keeping up-to-date technically and applying new knowledge to your job.
68% Judging the Qualities of Objects, Services, or People  -  Assessing the value, importance, or quality of things or people.
68% Developing and Building Teams  -  Encouraging and building mutual trust, respect, and cooperation among team members.
66% Scheduling Work and Activities  -  Scheduling events, programs, and activities, as well as the work of others.
65% Documenting/Recording Information  -  Entering, transcribing, recording, storing, or maintaining information in written or electronic/magnetic form.
65% Developing Objectives and Strategies  -  Establishing long-range objectives and specifying the strategies and actions to achieve them.

What Financial Managers Do

Financial managers
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.

Duties

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 financial reports and seek ways to reduce costs
  • Analyze market trends to maximize profits and find expansion opportunities
  • Help management make financial decisions

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.

Work Environment

Financial managers held about 792,600 jobs in 2022. The largest employers of financial managers were as follows:

Finance and insurance 30%
Professional, scientific, and technical services 14
Management of companies and enterprises 10
Government 6
Manufacturing 6

Financial managers work closely with top executives and with departments that develop data needed for analysis.

Work Schedules

Most financial managers work full time, and some work more than 40 hours per week.

Getting Started

Education:
56%
Bachelor's Degree
21%
Post-Baccalaureate Certificate - awarded for completion of an organized program of study; designed for people who have completed a Baccalaureate degree but do not meet the requirements of academic degrees carrying the title of Master.

How to Become a Financial Manager

Financial managers
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.

Education

Financial 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 Registrations

Although 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 Occupation

Financial 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.

Advancement

Experienced financial managers may advance to become chief financial officers (CFOs). These executives are responsible for the accuracy of an organization’s financial reporting.

Job Outlook

Employment of financial managers is projected to grow 16 percent from 2022 to 2032, much faster than the average for all occupations.

About 69,600 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.

Employment

Services 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.

Contacts for More Information

For more information about financial managers, including certification, visit

Global Academy of Finance and Management

For information about the Certified Government Financial Manager (CGFM) designation, visit

Association of Government Accountants

For information about the Certified Treasury Professional and the Financial Planning and Analysis Professional designations, visit

Association for Financial Professionals

For information about the Chartered Financial Analyst program, visit

CFA Institute

For more information about the certified public accountant designation, visit

American Institute of Certified Public Accountants (AICPA)

Similar Occupations

This table shows a list of occupations with job duties that are similar to those of financial managers.

Occupation Job Duties Entry-Level Education Median Annual Pay, May 2022
Accountants and auditors Accountants and Auditors

Accountants and auditors prepare and examine financial records.

Bachelor's degree $78,000
Budget analysts Budget Analysts

Budget analysts help public and private organizations plan their finances.

Bachelor's degree $82,260
Financial analysts Financial Analysts

Financial analysts guide businesses and individuals in decisions about expending money to attain profit.

Bachelor's degree $96,220
Insurance sales agents Insurance Sales Agents

Insurance sales agents contact potential customers and sell one or more types of insurance.

High school diploma or equivalent $57,860
Insurance underwriters Insurance Underwriters

Insurance underwriters evaluate insurance applications and decide whether to approve them.

Bachelor's degree $76,230
Loan officers Loan Officers

Loan officers evaluate, authorize, or recommend approval of loan applications.

Bachelor's degree $65,740
Personal financial advisors Personal Financial Advisors

Personal financial advisors provide advice to help individuals manage their money and plan for their financial future.

Bachelor's degree $95,390

Information provided by CareerFitter, LLC and other sources.

Sections of this page includes information from the O*NET 27.3 Database by the U.S. Department of Labor, Employment and Training Administration (USDOL/ETA). Used under the CC BY 4.0 license.

CareerFitter, LLC has modified all or some of this information. USDOL/ETA has not approved, endorsed, or tested these modifications.