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Jobs in the financial management career field are some of the most sought after in the market place, but the path to become a financial manager is full of challenges. A financial manager helps to establish the fiscal health of an organization and maintain its competitive advantage through the appropriate use of available funds. They use both technical and interpersonal skills to influence senior management, peers and subordinates about daily financial operations and long term plans. Here are some ways that aspiring financial managers reach their career goals.
Academic Background
The job functions of financial managers are highly sector specific. For example, a financial manager in the banking, insurance or financial services sectors are concerned with market analysis and directing investment activities for their organizations. Other financial managers monitor finances and conduct data analysis that ideally result in forecasts, cost reductions and optimized profits. One of the first steps to becoming a financial manager is to earn an undergraduate degree in finance or a related discipline like economics, business administration, applied math or accounting. The course work found in undergraduate finance and other related degree programs contain topics like statistics, business communication and financial analysis. Most financial managers also gain advanced degrees in business that help them to hone their managerial and leadership skills as well as cultivate knowledge in more advanced and specialized business topics.
Work Experience
The role of financial manager is a mid to senior level position, and the activities performed by those who fill the job are used in nearly all industries. Despite the useful skills that financial managers bring to their organizations, employment opportunities in the career field is only moderate, and competition for available jobs is fierce. Most finance professionals do not gain employment as financial managers immediately after graduation with a bachelor’s degree or an advanced degree. They often work their way up to the job by performing well in roles such as staff accountant, risk analyst or financial analyst.
Industry Certifications
Aspiring financial managers must plan to keep learning about the latest financial standards, methods and regulations that govern the industries in which they work. They often do this by creating plans to gain specific industry certifications at different times in their careers. This step is also important for those who already hold the position of financial manager. One of the main certifications that aspiring financial managers pursue is the Certified Management Accountant (CMA) credential. Managerial accountants and financial managers analyze financial data and influence senior level decision with the results of their work. The requirements for the CMA credential is an undergraduate degree, relevant entry level work experience and the successful completion of a two part exam that tests candidates’ knowledge of financial planning, analysis, financial controls and professional ethics, according to the Institute of Management Accountants. Another popular certification for financial managers who plan to have long term careers in the financial services sector is the prestigious Chartered Financial Analyst (CFA) credential. This certification program exposes financial managers to a variety of investment related topics and verifies candidates’ skills and knowledge through a series of comprehensive exams. Earning the CFA credential sets qualified financial management candidates apart from their peers because only a small percentage of finance professionals are able to complete the certification program and pass the exams.
Related Resource: Actuary Job Role
Conclusion
According to the Bureau of Labor Statistics, financial managers earned median annual salaries of $109,740 in 2012, and the potential to earn a six figure salary helps to attract many finance professionals to this job. However, to beat out the competition and become a financial manager one must develop a habit of life long learning and professional development.
