Finance Manager: Definition, Courses, Job Roles, Skills, Salary



12 June, 2024

Finance Manager: Definition, Courses, Job Roles, Skills, Salary

A headline in The Economist states that India’s financial system has witnessed a dramatic improvement in the past decade and that there is much more to come. The financial services industry is a growing sector in developing countries like India. According to Statista, the Indian finance market is expected to reach a US $ 19.55 million market value by 2027.  At this time, numerous career opportunities are bound to open in the finance industry. Since the market is undergoing some significant changes, the profile of finance managers has become highly relevant. Companies are eagerly looking for proficient candidates with advanced knowledge and skills

Regardless of the company’s goals, they need a financial manager for the smooth functioning of their business. If you aim to build a successful career in finance management, this blog is for you. It will answer all your questions: Who are financial managers? What’s the meaning of finance management, and what is the role of a financial manager?

What Does Financial Management Encompass?

The bookish definition of financial management is the strategic practice of establishing, monitoring, and controlling all an organisation’s financial resources to achieve business goals. It encompasses various functional areas of finance, including expenses, cash flow, profitability, and credit.

Financial managers are essential in building solid and agile financial plans to ensure the company’s long-term growth. Designing an effective financial management strategy requires focus on three fundamental principles:

  • Emphasis on long-term initiatives

  • Financial plans should be tailored according to the business model, market and industry

  • Predict financial performance through financial forecasting, tested functions and capital requirements.

Therefore, the role of a financial manager is crucial for any organisation and pretty vast. So, who are financial managers? Let’s read the blog to learn more.

Who are Finance Managers?

According to the U.S. Bureau of Labour Statistics, a financial manager has to create financial reports, direct investment plans, and develop strategies for long term If you are seeking to be a financial manager as a career option, you will have to oversee the financial health of an organisation and ensure its stability. From monitoring the cash flow, and managing expenses to compiling financial data and strategising for profit increase, you will be responsible for this role.

Irrespective of the size of the company, financial managers play a critical role in the proper functioning of the company. Thus, a career in financial management is a lucrative option with its dimensions spreading in India and abroad. The salary range will however vary depending on your location, past experience and educational qualifications. As per the current market trends, the average salary of a Finance Manager is INR 17 LPA.

Finance management is a broad field, so the roles and responsibilities are different and expanded. Further in this blog, we have described in detail the role of a finance manager.

Role & Responsibilities of a Financial Manager

Now you might be wondering what a financial manager does.  Here are some of the responsibilities which will fall upon your shoulders in this position.

  • Monitoring the company’s cash flow and predicting future trends

  • Understanding and analysing the company’s economic conditions in relation to the financial market

  • Analysing the competition and market dynamics

  • Creating and maintaining financial reports

  • Designing and efficiently using financial management tools that would help minimise financial risk

  • Planning a budget which suits the company’s specified limit

  • Studying the factors influencing business performance and accordingly strategising the long-term business goals

  • Looking for new finance sources and keeping a tab on the latest financial laws and legislation.

What are Finance Manager Skills?

To become an expert finance manager, you must develop the necessary skills. So what are the skills you need to focus on, let’s see:

  • Analytical skills

  • Accounting and budgeting skills

  • Strong decision-making ability

  • Leadership quality

  • Sound communication skills

  • High mathematical aptitude

  • Adaptability and quick learner

  • Technical proficiency

  • Industry-specific knowledge

  • Strong understanding of budgeting and financing

  • Knowledge of financial management tools

Challenges Faced by Finance Managers

When running a business, you may face various unexpected problems and these challenges have a significant impact on the financial standing of the company. However, these problems can be easily prevented and handled by using apt reporting and finance management tools. Moreover, knowing the challenges a company often faces also helps to be prepared for the time when the situation arises. Here are some challenges faced by finance managers:

  • Managing cash flow

  • Not having an effective plan for efficient usage of the budget

  • Raised capital is not as expected

  • Heavy debt

  • Poor financial reporting

  • Not having proper tax compliance

  • Getting late for bill payment

What is the Future Scope?

Today, as we know, technology is at par with human intelligence and is entering most industries. Similarly, the finance industry is also adopting technologies such as artificial intelligence and automation to reshape the financial management landscape. To validate this point, let’s take a look at a report by PricewaterhouseCoopers. It stated that 77% of financial services executives believed that AI would significantly impact financial management by 2023.

Despite everything, various industries have a high demand for financial managers. For example, healthcare organisations require financial managers with knowledge of healthcare financing as well as reimbursement systems, while technology companies seek professionals with expertise in financial modelling and risk management for tech investments. Similarly, other industries can put AI to use through finances.

Top Companies Hiring Financial Managers

A study by Robert Half, a leading staffing firm, found that financial management roles are in high demand globally. The study reported that 74% of CFOs expressed difficulty in finding skilled financial professionals. Thus, indicating a shortage of qualified professionals.

Hence, it is evident that several leading companies across various industries recognise the importance of financial managers in driving their financial strategies. Here is a list of world-renowned organisations that frequently hire financial managers:

finance manager companies

How to Become a Finance Manager?

Here’s a five steps guide on how to become a finance manager:

  1. Study the Industry: Conduct thorough research on the industry through career websites, and industry reports from top firms. This will help you understand the typical job functions, career scope, required skills, and other opportunities in the field.

  2. Complete your 12th Education: It is the first realistic step towards your way to financial management. In your 10+2 you should preferably choose commerce stream to build your foundation in the finance subject. Moreover, economics and mathematics are also advantages for the future.

  3. Go for a Finance-Related University Degree: Employers prefer students in finance, accounting or other related subjects for this position. Generally, candidates aiming for finance manager roles go for a B.Com, BA in Accountancy or Bachelor of Economics programme. You can go for an MBA or M.Com degree to further enhance your knowledge and credentials.

  4. Add Certifications: Earning extra certifications is not a necessity. It shows your eagerness to learn, your proficiency and how updated you are with the latest advancements.

  5. Gain Relevant Work Experience: Even while studying, you should look for internship opportunities to gain practical knowledge and increase your experience. Sometimes companies hire interns for full time based on their performance. This gives an upper hand while applying for jobs.

Wrapped Up

Today, as we know, technology is at par with human intelligence and is entering most industries. Similarly, the finance industry is also adopting technologies such as artificial intelligence and automation to reshape the financial management landscape. These advancements act as a testament to the newer opportunities this industry will experience. Therefore, planning a career as a finance manager will be a fruitful investment in your future.

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