Financial Manager education requirements

Summary

Financial managers are responsible for the financial health of an organization.

Financial managers are responsible for the financial health of an organization. They produce financial reports, direct investment activities, and develop strategies and plans for the long-term financial goals of their organization.

Financial managers work in many industries, including banks and insurance companies. Most financial managers work full time, and many work long hours.

Financial managers typically have a bachelor’s degree and 5 years or more of experience in another business or financial occupation, such as loan officer, accountant, auditor, securities sales agent, or financial analyst.

The median annual wage for financial managers was $109, 740 in May 2012.

Employment of financial managers is projected to grow 9 percent from 2012 to 2022, about as fast as the average for all occupations. As with other managerial occupations, jobseekers are likely to face competition because the number of job openings is expected to be fewer than the number of applicants. Candidates with a master’s degree or certification should enjoy the best job prospects.

Compare the job duties, education, job growth, and pay of financial managers with similar occupations.

Learn more about financial managers by visiting additional resources, including O*NET, a source on key characteristics of workers and occupations.

Financial managers perform data analysis and advise senior managers on profit-maximizing ideas.

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 company financial reports and seek ways to reduce costs
• Analyze market trends to find opportunities for expansion or for acquiring other companies
• Help management make financial decisions

The role of the financial manager, particularly in business, is changing in response to technological advances that have substantially reduced the amount of time it takes to produce financial reports. Financial managers’ main responsibility used to be monitoring a company’s finances, but they now do more data analysis and advise senior managers on ideas as to how to maximize profits. They often work on teams, acting as business advisors to top executives.

Financial managers also do tasks that are specific to their organization or industry. For example, government financial managers must be experts on government appropriations and budgeting processes, and healthcare financial managers must know about issues in healthcare finance. Moreover, financial managers must be aware of special tax laws and regulations that affect their industry. For more information on chief financial officers, see the profile on top executives.