The growth potential of financial manager jobs looks sluggish compared to the national average, with only a nine percent increase in demand by the year 2020, but it is an occupation that will always remain high in demand. Nearly every firm, government agency and organization employs financial managers. With a tight look at improving the future economy, the financial manager is a highly valued employee who works with the top managers of the company.
The Knowledge That Gets You Ahead
Thirty percent of financial managers work within financial institutions or for the insurance industry. A financial manager for an insurance company will be required to know any issues that could come up regarding financing a plan. Knowledge of special regulations and laws are essential, to remain within legal guidelines. They must comply with policy by preparing special reports required by regulatory authorities.
Financial managers at banks are increasingly being asked for a broad knowledge base concerning the various products a bank has to offer. Depending on the branch, a financial manager’s job could include approving loans, establishing credit lines, hiring employees and aiding customers with their accounts.
Primarily, however, financial managers are hired for their abilities to develop strategies and long term plans. They are relied on for their expertise in directing investments, preparing financial reports and developing financial procedures in accordance with the organization’s goal. Employers generally require at least five years of experience in finance or a related field before hiring someone to a financial position.
How to Excel in a Competitive Industry
The competition within the field is very high. Financial management is a desk job that often comes with its own office. Although it is considered a forty hour a week job, financial managers sometimes find themselves working fifty to sixty hours a week in order to make deadlines.
If a company has affiliates or satellite branches, they might be required to travel. They often have access to state of the art computers and software programs for studying financial data. The average salary is $103,000 a year.
They introduction of sophisticated software programs and technology is changing the role of financial managers. Technology aids significantly reduce the time spent on financial report preparation, allowing them more time to perform other tasks. As a result, financial managers now often work on teams, concentrating on more thorough data analysis to offer the senior managers for profit maximizing ideas.
An increase in start-up businesses is expected to drive the demand for financial managers. Financial managers assist new businesses by overseeing cash management, and establishing the standards and procedures. Their duties also entail monitoring financial reports to guard against losses, and consulting with department heads to determine company needs and allocating resources.
The competitive nature of a financial manager’s position is relative to the competitive nature of business. In order to thrive in the current business climate, industry must measure the risks and practicalities of future investments. They must prepare for inflationary prices to balance the costs involved in long term budgets and maintain realistic views of profit margins.
Many businesses are now expanding overseas and require the expertise of financial managers trained in international laws. Because of the changing roles for financial managers and the competitive nature of business, most organizations and industry now require a master’s degree in finance, economics or business administration instead of a bachelor’s degree.