How to Become a Financial Manager?
Learn the step-by-step process to become a Financial Manager, including qualifications, tasks, and career prospects to help you achieve your financial career goals
In this Career Outline
Introduction to Financial Manager
"Being a Financial Manager means being the captain of a ship navigating through the turbulent waters of the market. Steering wisely is key to reaching the destination."
The role of a financial manager varies widely depending on the organization. In smaller firms, they may handle budgeting, accounting, and payroll, while in larger organizations, they might be a chief financial specialist reporting to executive management and responsible for specific sectors. Financial managers are involved in planning, forecasts, accounting, accountability, and financial management, and they may contribute to internal audits and strategic aspects like expense and risk management. They support senior management in making investment decisions by providing analyses and recommendations. A competent financial manager keeps management informed about financial innovations and market changes, aiding in the formulation of short- and long-term economic policies and strategies.
Steps to Become a Financial Manager:
Step-1
Start with a bachelor’s degree in finance, accounting, or a similar field. This foundational step is crucial for building the knowledge base required for a financial management career.
Step-2
Consider furthering your education with a Master’s in Business Administration (MBA) or a Master’s in Finance. This can provide a competitive edge and deepen your expertise in financial strategies and management.
Step-3
Start in entry-level finance or accounting positions. Experience in roles like financial analyst or accountant helps you understand financial systems and gain practical insights.
Step-4
Certifications such as Chartered Financial Analyst (CFA) or Certified Public Accountant (CPA) are highly valued in the finance industry and can enhance your credibility.
Step-5
Focus on developing essential skills such as financial analysis, strategic planning, and leadership. These skills are crucial for managing financial operations effectively.
Step-6
Financial management is a dynamic field. Regularly update yourself with the latest financial regulations, technologies, and industry best practices.
Step-7
Connect with industry professionals and seek mentorship. Networking can provide valuable insights and opportunities in the financial management field.
Eligibility Criteria
| Eligibility Criteria | Description |
|---|---|
| Eligibility | Must possess at least 50% aggregate from a recognized institution (PUC/CBSE/ICSE/ISC, etc.) |
| Educational Background | High school diploma or equivalent. |
| Undergraduate Degree | A bachelor's degree in Finance, Accounting, Business Administration, Economics, or a related discipline is essential. |
| Postgraduate Degree | An MBA or a master’s degree in Finance or a related discipline is preferred and can provide extensive learning and better opportunities. |
| Entrance Exams | Should obtain a valid score in entrance exams such as CAT, MAT, CMAT, etc. Some colleges may conduct their own entrance exams if scores in major tests are not satisfactory. |
- Must have at least 50% aggregate in 12th grade from a recognized board (PUC, CBSE, ICSE, ISC). Cut-off percentages vary by college.
- Obtain a valid score in Entrance exams after 12th like CAT, MAT, or CMAT. Some colleges have their own exams, and state-specific tests are also available.
- A degree in B.Com, BBA, or a diploma is required for entry-level finance management roles.
- An MBA in Finance is beneficial for advanced roles and better learning opportunities.
Not eligible to pursue this career?
Find out different career options based on your current academic accomplishments. Enquire with our career experts and build a roadmap to your career success!
Tasks to perform as a Financial Manager:
Knowledge & Skills Required
Financial Managers must possess a wide array of skills to succeed in their careers. Here are the key knowledge areas and skills needed to excel in this field:
| Knowledge Required | |
|---|---|
| Understanding and preparing financial statements, balance sheets, income statements, and cash flow statements. | Expertise in budget creation and management, financial planning, and forecasting future financial outcomes. |
| Familiarity with Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS). | Understanding tax laws, regulations, and compliance requirements relevant to the organization. |
| Proficiency in analyzing financial data, trends, and performance metrics to make informed decisions. | Identifying, assessing, and managing financial risks, including market, credit, and operational risks |
| Skills Required | |
|---|---|
| Analytical Skills | Empathy |
| Leadership | Time Management |
| Communication | Problem-Solving |
Understanding What are soft skills? and why is it important,as they complement technical abilities and enhance overall performance in the field of Financial Manager.
The Knowlegde and Skills don't intrigue you?
Your career may not align with your interests. Identify them and match with careers requiring those skills for faster growth and success!
Job roles offered for a Financial Manager:
Once you obtain the necessary qualifications to become a Finance Manager, numerous career options are available to you. Here are some important roles you can consider:
A bank manager oversees financial employees, enhances customer service, and boosts the bank's profitability. They ensure the institution operates efficiently and report to a regional director.
Credit managers handle issuing and reclaiming credit, ensuring compliance with payment terms, and minimizing bad debts. They require strong quantitative skills, knowledge of accounting technology, and a degree in economics or accountancy.
Finance officers manage an organization's financial capabilities to meet budgetary targets. They ensure compliance with legal and accounting rules, support strategic decisions, and work across various settings, including government and healthcare.
These managers oversee a company's economic administration by collaborating with different departments. They analyze budget measures, legislative requirements, and financial data to achieve organizational goals.
Finance directors are senior managers responsible for a firm's economic condition. They combine operational and analytical tasks, manage finance and accounting, and develop long-term financial plans. They work closely with department leaders to ensure financial stability.
Not sure where you fit in?
With countless career options, choosing the right path can be tough. Analysis and guidance sessions help clarify what to study, pursue, and achieve.
Career Opportunities for a Financial Manager:
Financial Managers can opt for various fields of work in the companies listed below:
| Oracle | Mastercard | Atlas Copco |
| Atradius | Bunge | Volvo Group |
| Shell | YouGov | Myntra |
| Stryker |
Colleges offering courses for Financial Manager:
Here is the list of colleges offering the Best courses after 12th:
| St Xaviers College, Ranchi | KJ Somaiya College of Science and Commerce, Mumbai |
| PSGR Krishnammal College for Women, Coimbatore | Sri Krishna Arts and Science College, Coimbatore |
| JBIMS Mumbai - Jamnalal Bajaj Institute of Management Studies | School of Distance Education, Andhra University, Visakhapatnam |
| BJB Autonomous College, Bhubaneswar | Karmaveer Bhaurao Patil College, Vashi |
| Samrat Prithviraj Chauhan Government College, Ajmer | Serampore College, Serampore |
End Note
Financial managers enjoy a wide range of career opportunities across various sectors, including banking, insurance, investment firms, and multinational corporations. Their expertise is critical in strategic decision-making and financial planning, making them highly sought after in the job market. For more personalized Career counselling after graduation and to explore career opportunities, connect with our experts at SetMyCareer. We’re here to guide you along your journey to success!
In this Career Outline
You don't fit in as a Financial Manager?
Find out your best suitable career by booking an appointment with our experts
Book now
Get In Touch
No. 14/595, 1st Floor, Nanjappa Reddy Layout, Koramangala 8th Block, Bangalore 560095