Whether you already work in finance or wish you did, the role of a financial manager can look very appealing. And it's one of those careers that tends to look even better as you examine its details.
For example, the employment of financial managers is projected to grow 17 percent from 2023 to 2033, according to the U.S. Bureau of Labor Statistics (BLS).1 Though that may not seem like a striking number, it's a rate much faster than the average for all occupations.1
In that same time frame, an average of 75,100 job openings for financial managers are projected each year.1 The bottom line? The job outlook for financial managers is strong—and becoming one could be a great career move. But how exactly do you become one?
Though everyone's path is different, there are some typical requirements for financial management jobs. Here's a step-by-step guide on how to become a financial manager, and some tips to help you out along the way.
1. Pursue college education
Financial managers typically need at least a bachelor's degree in finance, business, economics or a related field.1 Studying one of these disciplines at the college level can help students learn some of the analytical skills and methods they'll eventually need in a finance manager role.
While obtaining a master's degree can be a great way to advance even further as a financial manager, it's not necessarily expected or viewed as a standard requirement by many employers.
2. Gain some work experience
In addition to a relevant degree, financial managers typically need at least five years of experience in another business or financial occupation. This can include anything from work as an accountant to a securities sales agent, or a loan officer to a financial analyst.
There's no one way to become a financial manager, but you should know this isn’t an entry-level role. Getting a few years of experience in finance or a related industry is a necessary step on the road to finance management.
This important step also means you'll be able to make connections in the field, learn from others around you and find support in your workplace.
In some cases, companies may provide management training to help prepare motivated, skilled financial workers become managers.1
3. Consider relevant certifications
After receiving a bachelor's degree, some students choose to pursue additional professional certification. Taking this extra step can help prepare you for a more advanced role, as well as demonstrate your drive and competence to employers.
There are a number of different professional certifications you can explore, and each one has its own requirements.
Certified Government Financial Manager (CGFM)
The Association of Government Accountants™ (AGA) offers the Certified Government Financial Manager (CGFM) designation to financial managers working with federal, state or local government.1
This certification requires that candidates have a bachelor’s degree from an accredited college or university, pass the necessary examinations and have professional experience in government financial management. Like with many certifications, CGFMs must complete continuing professional education over time to retain the designation.1
Chartered Financial Analyst (CFA)
The CFA Institute offers the Chartered Financial Analyst (CFA) certification, which is a popular choice for investment professionals. CFA candidates must have at least a bachelor’s degree, four years of work experience or a combination of both. They then must pass three exams.1
Certified Treasury Professional (CTP)
The Association for Financial Professionals offers something called the Certified Treasury Professional (CTP) credential. In addition to passing an exam, CTP candidates must have at least two years of relevant professional experience or at least a year of experience plus a graduate degree in business, finance or a related field.1
Certified Corporate Financial Planning Analysis Professional (FPAC)
The Association for Financial Professionals also offers the Certified Corporate Financial Planning Analysis Professional (FPAC) credential. FPAC candidates must have a bachelor’s degree or be enrolled in and within two years of graduating an undergraduate program with a finance-related major. They must also pass an exam.1
Whether or not you choose to pursue any of these credentials is up to you, but it's good to keep them in the back of your mind. Many professionals wait until they're a bit further along in their career and have a willing employer to sponsor them throughout the process.
4. Choose your desired job setting
Financial managers held about 837,100 jobs in 2023. While financial managers are needed at most types of businesses—from big enterprises to small family businesses—the largest employers of financial managers including the following.1
Consider all of these possibilities as you look towards a financial manager career! Or, if you’re wondering what some other job titles in finance could look like, check out What Can You Do with a Finance Degree? 7 Careers to Consider.
Finance and insurance
31% of financial managers in 2023 worked for finance and insurance companies.1 Finance companies can include banks or investment firms like Wells Fargo or Fidelity, and any of the insurance companies you've heard of like Liberty Mutual or State Farm.
Professional, scientific and technical services
13% of financial managers in 2023 worked for professional, scientific and technical services employers.1 This is a particularly broad sector, consisting of organizations that provide legal services, accounting services, architectural and engineering services, advertising and specialized design services and much more.1 One of the biggest companies in this space is Accenture.
Management of companies and enterprises
10% of financial managers in 2023 worked for management of companies and enterprises. This includes establishments that hold the securities of (or other equity interests in) companies and enterprises.1
These organizations—and the financial managers employed by them—help manage those companies and act as strategic decision-makers for them.
Two examples of these types of employers? Berkshire Hathaway and Icahn Enterprises.
Government
6% of financial managers in 2023 worked for government employers.1 This can include working for the federal, state or local government, or for any sort of government corporation.
Manufacturing
6% of financial managers in 2023 were employed by manufacturing businesses.1 This is another super broad sector consisting of any company that uses raw materials or components to create finished goods. This can include companies spanning from Apple to Pepsi to Ford Motor Company.
Whether a financial manager works at a local design services company, for the federal government or anywhere in between, they typically work closely with top executives and with departments that develop and analyze data—and this requires certain strengths.
5. Accumulate the right qualities and skills
This step isn't necessarily last, it's something you'll do throughout every stage of this process. And in many cases, it can be the most important. Even if you check all the boxes listed above, having the right strengths and interests for a career in financial management is key to actually enjoying the day-to-day of the role.
From technical skills to soft skills, here are a few important qualities that most financial managers have.1
Analytical skills
To assist those top executives in making decisions, financial managers need to constantly evaluate data and information that affects their organization.
Effective financial managers can analyze everything from big-picture market trends to granular financial statements and business activity reports, and they use their analytical skills to connect the dots between the two.
Communication skills
A lot of finance managers need to help bridge the gap between the data side and the people side of a company. Having the ability to explain and justify complex financial transactions and an organization's overall financial health or financial performance is essential, and that's where strong communication skills will come in handy.
Skill with the details
Financial professionals spend a lot of time preparing and analyzing financial reports, and financial managers are no exception. As they conduct financial reporting with everything from balance sheets to income statements, financial managers must be precise, attentive and detail-oriented to avoid errors.
Math skills
Of course, financial analysis requires a certain level of proficiency with numbers. Financial managers need strong skills in certain branches of mathematics, including algebra. They'll need to be able to break down all forms of financial data, create financial forecasts and understand complex financial documents. This is also where certain accounting skills may come in handy.
Organizational skills
Financial managers deal with a range of financial information and documents, and strong organizational skills and structures will help them be much more effective in their work.
Leadership skills
It's probably clearer now that financial management isn't an entry-level job, and it requires a certain level of leadership skills. Financial managers work closely with other senior managers, data teams, business executives and more.
Being able to confidently take the lead in different scenarios and with certain business decisions is important, and the strength of a finance manager's leadership skills can ultimately play a big role in a company's ability to meet its financial goals.
Take the first step toward a financial manager career
Now that you know a little bit about what goes into a career as a financial manager—and the exciting job opportunities and employment growth projected for the field—it's time to take the first step.
If pursuing a bachelor's degree in finance feels like the right choice for you, check out our article, 9 Signs You Have What It Takes to Major in Finance.
1Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Financial Managers, (accessed September 2024), https://www.bls.gov/ooh/management/financial-managers.htm#tab-1
