Corporate finance. From the outside, it can seem like an entire world unto itself. A place where people spend entire days neck-deep in spreadsheets, spewing lingo only others in the field can decode.
But the finance industry is no secret society.
Anyone who wants to learn about finance can do so. So, if you’ve always wanted to know what it’s like to work as a financial manager, then today's your lucky day!
Here’s everything you need to know about these professionals.
What are the main responsibilities of a financial manager?
Financial managers, sometimes called “finance managers,” keep their organizations in good financial health. They carefully analyze business expenses and revenue patterns, essentially to make sure companies spend money wisely.
At the same time, finance managers help organizations meet their obligations. Government regulators require companies to prepare various financial reports, and a finance manager is typically involved in that process. Tax laws and financial regulations change all the time, so it’s safe to say this line of work never gets boring!
Financial managers also contribute heavily to organizations’ risk management strategies. They apply their analytical skills to determine which financial risks a company can afford to take—and which ones to avoid.
Managing debt effectively requires financial expertise as well. Finance management professionals often help companies determine the ideal combination of debt and equity to maintain.1
Finance managers review financial records and draw insights on investment decisions, which they then share with business leaders to help maximize profits.
And, speaking of profits, financial managers play a key role in increasing revenue as well. They keep an eye on market trends to let upper management know how—and when—a company may successfully expand its offerings.2 After all, organizations are never profitable by mistake. Running a successful business means making every dollar count, and financial managers are instrumental in doing just that.
Ultimately, financial managers influence every aspect of the companies that hire them. That’s because these professionals help create the budgets that determine everything from department stores’ inventory levels to employee benefits packages.
What types of financial documentation do financial managers work with?
There are different types of financial statements and business activity reports, but a finance manager generally focuses on the following:1
Income statements
Sometimes referred to as “profit and loss (P&L) statements,” income statements reflect companies’ financial performance over a given timeframe. The financial data within an income statement contains specific details about an organization’s revenue, expenses and net income (or net loss).2
Balance sheets
These financial statements contain details about organizations’ assets, liabilities and shareholders’ equity. Balance sheets employ the following equation: assets = liabilities + shareholders’ equity.3
Cash flow statements
These financial reports reorder the information included within balance sheets and income statements to provide further insight into an organization's financial health. Cash flow statements indicate how much cash a company spent and received within a specified period. These statements also break down specific activities related to business operations, investments, and financing.3
Together, these financial statements provide an overview of a company’s financial health. Typically, a financial manager will review financial reports to identify opportunities to increase profits through cost-cutting measures.
Who do financial managers collaborate with?
Financial planning is a group effort that involves collaboration between financial managers, executive leadership and the various departments that exist within an organization.4 As the Bureau of Labor Statistics (BLS) explains, “Financial managers spend much of their time analyzing data and advising senior managers on ways to maximize profits.”
This makes the role so much more than being good with financial analysis. You need to be able to explain, communicate, teach and advise—all skills that involve communication, active listening and more.
Finance managers oversee an array of different financial professionals. Financial planning for the overall organization will also involve working with different team leaders and departments.
Can financial managers choose specialty areas for their careers?
According to the BLS, professionals in this field can take many forms. In fact, there are quite a few job titles related to financial management.
Please note that Rasmussen University’s Accounting Associate’s degree and Accounting Bachelor’s degree programs do not meet the educational requirements for licensure as a Certified Public Accountant (CPA) in any state, and the Rasmussen University’s Finance Bachelor’s degree and Master of Business Administration degree programs are not designed to prepare graduates for any state-issued professional license or certification and have not been approved by any state professional licensing agency.
It is important to check the education, work experience, and licensing requirements of employers to pursue any of the following career opportunities.
Controllers
A controller is a type of financial manager who is directly involved in preparing the financial reports companies use to analyze past performance and forecast future profits. Controllers will also prepare reports mandated by government regulators. As part of an organization’s senior management, a controller will usually oversee the company’s accounting, budgeting and audit processes.
Treasurers and finance officers
These finance management professionals focus on budget allocation. Their main responsibility is providing the guidance and expertise needed to ensure an organization meets its financial goals. Treasurers and finance officers keep decision-makers informed about investment opportunities and strategies for raising capital. They are also key players in preparing companies for mergers and acquisitions.5
Credit managers
These financial managers oversee the processes through which businesses offer lines of credit to customers. Credit managers apply their financial expertise to “set credit-rating standards, determine credit limits and monitor the collections of past-due accounts,” states the BLS.
Cash managers
A cash manager is a finance manager whose primary concern is tracking cash as it flows in and out of a company. Cash managers help guide financial decisions by keeping company leadership informed as to whether an organization is slated to have a shortage or surplus of cash.
Risk managers
These financial managers help organizations minimize financial loss and avoid financial uncertainty. Risk management involves monitoring financial markets to track fluctuations in currency and commodity prices.
Insurance managers
An insurance manager is a type of financial manager who helps protect a company “against risks, such as disability payments to an employee who gets hurt on the job,” explains the BLS.2
A financial manager may also advance to the role of chief financial officer (CFO), an executive-level position.6
What is the career path like for financial managers?
Finance management positions are not entry-level roles.
Anyone who would like to become a financial manager must have at least five years of relevant work experience, according to the BLS. Accountants, securities sales agents, and financial analysts are all examples of professionals whose experience may prepare them for finance management. The earlier years working as a financial professional are critical to familiarize you with the many processes of finance.
And, although a master's degree is not required to become a financial manager, certain graduate-level programs may equip students with relevant skills for working in finance. For example, Master of Business Administration (MBA) coursework familiarizes learners with best practices surrounding financial data analysis.
(For more about that, check out some of the highlights of a Master of Business Administration (MBA) degree program.)
Having in-depth finance knowledge is never a disadvantage, especially not in a competitive job market.
What is the job outlook for financial managers?
Aspiring financial managers will be happy to know that the BLS anticipates a thriving job market in the coming years.
The employment of financial managers is projected to grow 17 percent from 2023 to 2033, which the BLS describes as, “much faster than the average for all occupations.” Per the Bureau of Labor Statistics, there will be roughly 75,100 new job openings for financial managers each year during the specified timeframe.7
Finance is a much more varied industry than most people think!
Finance is a huge industry, and it's not only for people who want to work in formal corporate settings. Startups, non-profits, small businesses, healthcare institutions, universities and government agencies can all benefit from the expertise of a good financial professional.
If you enjoy working with numbers and solving puzzles then studying finance could be especially fulfilling. Rasmussen’s online Bachelor’s degree in Finance include projects with scenarios that help you practice how organizations set—and meet—financial goals.
If you think a financial manager career sounds interesting, check out How to Become a Financial Manager—and see what it takes to get there.
Rasmussen University’s Finance Bachelor’s degree and Master of Business Administration degree programs are not designed to prepare graduates for any state-issued professional license or certification and have not been approved by any state professional licensing agency. It is important to check the education, work experience, and licensing requirements of employers to pursue a role as a financial manager.1Indeed Editorial Team, Indeed.com, Financial Management: Purpose, Daily Functions and Examples, (accessed September 2024), https://www.indeed.com/career-advice/finding-a-job/what-is-financial-management
2Bureau 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-2
3Office of the Advocate for Small Business Capital Formation, U.S. Securities and Exchange Commission, What is an income statement? (accessed September 2024), https://www.sec.gov/files/income-statement-building-blocks.pdf
4U.S. Securities and Exchange Commission, Beginners’ Guide to Financial Statement, (accessed September 2024), https://www.sec.gov/about/reports-publications/investorpubsbegfinstmtguide
5Bureau 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-3
6Bureau 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-4
7Bureau 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-6
