What is a Financial Manager?
Financial Managers oversee the financial affairs of large corporations, government organisations, and everything in between.
They supervise accounting and prepare financial reports, cash flow statements, and profit estimates with their teams.
They must pay close attention to detail to comply with numerous rules and regulations.
Financial managers are responsible for activities that are unique to their company or industry.
Government financial managers, for example, are in charge of government appropriations and budgeting. Whereas healthcare financial managers are in charge of all financial elements of hospitals, physician groups, managed care facilities, and other medical providers.
Whether they are in charge of overseeing the whole financial operation or a specialised component of finance, such as credit or risk management, Financial Managers are critical to an organisation’s performance.
Responsibilities
The responsibilities of a Financial Manager depends on the area that they specialise in, but can include:
- Creating various financial statements, reports and projections on business operations.
- Reviewing business financial data and looking for methods to save expenses
- Supervising personnel that handle financial reporting and planning
- Monitoring financial details to verify that legal obligations are satisfied
- Looking at market trends to see if there are any chances for expansion or acquisition.
- Assisting the management in making financial decisions
- Managing credit
- Investment management
- Financial forecasting
- Managing the risk of financial loss
Salary
Geographic location, work setting and experience are just some of the determining factors when it comes to Financial Manager salaries.
The Average Financial Manager salaries in the UK in 2022 range from £55,000 to £65,000.
The average UK salary for Financial Managers according to the geographic location in 2022. amounts to:
- London: £64,975
- Scotland: £55,935
- Wales: £52,545
- Yorkshire: £54,240
London, being the financial heart of the UK, offers some of the highest salaries in the finance area.
Working hours and work location
Banks, investment businesses, and insurance companies are just a few of the industries where financial managers work.
The majority of financial managers work full-time (38 to 40 hours per week), with some exceeding 40 hours per week.
Financial managers operate in offices, typically in close proximity to senior executives and the divisions that produce the financial data they require. They frequently have direct access to cutting-edge computer systems and data services.
Financial Managers are usually obliged to attend meetings of financial and economic organisations, and they may be asked to go to subsidiaries or meet consumers.
Qualifications
A bachelor’s degree in an area such as accounting, finance, or business administration is usually required to become a Financial Manager.
A master’s degree in a similar profession can help you gain the information and skills you need to grow in your career.
Individuals can acquire a variety of professional certifications in addition to advanced degrees to improve their knowledge and capabilities.
The following are only some examples of certifications available for Financial Managers:
- FRM – Financial Risk Manager.
The Global Association of Risk Professionals (GARP) has a professional credential called Financial Risk Manager (FRM). The Global Association of Risk Professionals FRM accreditation is widely regarded as the gold standard for financial risk managers who work in financial markets.
- CPA – Certified Public Accountant
The CPA qualification identifies qualified accounting professionals who are dedicated to public service. These experts provide financial statement audits and other attestation services to assist investors to understand a company’s financial health.
- Certified Management Accountant (CMA)
The CMA (Certified Management Accountant) is an advanced professional certification that assesses accounting and financial management abilities that are critical to a company’s success.
- Chartered Tax Advisor (CTA)
The CTA is the most renowned and advanced tax qualification in the United Kingdom.
- Association of Corporate Treasurers (ACT)
ACT certificate builds existing financial knowledge and develops specialist skills in treasury and corporate finance.
Skills
Throughout their education, experience, and day-to-day duties, Financial Managers develop a wide range of abilities.
Some of the following skills are possessed by successful Financial Managers.
must have skills:
- Leadership – Financial Managers work with individuals or as part of a team, and they often have extensive experience directing finance teams.
- Organisation – As a Financial Manager, you’ll need to be able to arrange your data as you’ll be discovering and retrieving new information on a regular basis.
- Communication – Financial Managers are able to explain complex calculations or analysis so that information is presented in a clear and understandable manner.
- Analysis – Financial Managers employ analytical skills when establishing contracts, generating budgets, and estimating profit and loss.
- Problem-solving – Financial Managers have a thorough awareness of the company’s financial objectives and can devise effective strategies for achieving those objectives without risking the company’s success.
- Interpersonal skills – Successful Financial Managers are able to connect with people on a personal level and encourage their staff to accomplish computations and analyses with speed and precision.
- Mathematical proficiency – Financial Managers that are capable of understanding and creating formulae are well-versed in algebraic mathematics.
- Attention to detail – When working with figures, Financial Managers must ensure accuracy. They must split their attention to several financial activities of a corporation since they control how and where a company spends its money as well as how and where it earns a profit.
- Ability to work independently – Financial Managers that are good at what they do are not only self-starters who can prioritise duties, but they also have the ability to inspire people to work independently.
- Technological skills – Effective financial managers are tech-savvy and know how to use a variety of tools and applications to their benefit.
Work experience
Financial Managers collaborate closely with senior executives and the divisions inside the organisation that produce the data that they require.
They operate in a range of settings, including: multinational organisations, merchants, financial institutions, NHS trusts, charities, manufacturing firms, universities, and general businesses, in both the public and private sectors.
As previously noted, in order to be a successful Financial Manager it’s crucial that you have a strong mind for numbers, as well as the ability to communicate well with coworkers from other departments.
Career prospects
What Can You Do with an MBA in Finance? is one of the questions to ask yourself as a prospective Financial Manager and a prospective student in the finance area.
Financial Managers have been in high demand in the UK recruiting market in recent months, and they will continue to have the first pick of opportunities as long as the finance industry lacks enough skilled individuals financial managers’ career path
Financial Managers seldom start their careers right out of college, regardless of their educational background. To get hands-on experience, individuals must have more than five years of experience in a technical financial vocation. At this level, responsibilities differ depending on the job title.
Banking and allied services, corporate financial management, financial and investment planning, and insurance services are the four professional paths available within the finance cluster. Prospective Financial Managers can seek relevant professional experience in any of those professional paths.
Some of the specific job roles in Finance Managing include:
- Treasurers – Treasurers are in charge of directing the budgets of their organisations in order to achieve their financial objectives. They are in charge of the monetary investment. They use capital-raising tactics (such as issuing stocks or bonds) to fund the company’s expansion. They also create financial strategies for mergers and acquisitions.
- Controllers – Controllers oversee the creation of financial reports such as income statements, balance sheets, and forecasts of future profits and spending that describe and predict the organisation’s financial condition. Controllers are also in charge of drafting specific reports that are requested by government regulatory authorities. Controllers are often in charge of the accounting, auditing, and budgeting divisions.
- Risk Management Specialists – Financial risk is managed by risk managers who use hedging and other measures to reduce or eliminate the likelihood of a financial loss or a company’s exposure to financial uncertainty. Currency and commodity price fluctuations are one of the hazards they aim to avoid.
- Credit Managers – Credit managers are in charge of the company’s credit operations.
They establish credit-rating standards, credit limits, and collection procedures for past-due accounts.
- Insurance Managers – Insurance managers determine how to effectively minimise a business’s losses by getting insurance against risks such as the need to give disability payments to an employee who is injured on the job, as well as any expenditures incurred as a result of a lawsuit filed against the company.
- Cash Managers – In order to satisfy the organisation’s business and investment needs, cash managers monitor and regulate the movement of cash in and out of the company. They must, for example, forecast cash flow (amounts flowing in and out) to assess if the firm will be short on cash (and hence require a loan) or will have more cash than is required (and can invest some of its money).
Related Courses
Here are some MSc recommendations:
The University of the West of Scotland’s one-year full-time program will give you the executive training you need to launch your Financial Management career. Since the London Campus is located in the financial centre of London it provides you with a unique perspective on UK business and gives you a hand up on Londons’ lucrative Financial Managers job opportunities.
Other related courses
- Master of Finance (MFin)
- Master of Business Administration (MBA)
FAQ Summary
Financial Managers oversee the financial affairs of large corporations, government organisations, and everything in between.
The Average Financial Manager salaries in the UK in 2022 range from £55,000 to £65,000.
A bachelor’s degree in an area such as accounting, finance, or business administration is usually required to become a Financial Manager.
