How to Become a Financial Manager

Approaching your education with a future career in mind is both smart and practical. With finance being one of the fastest-growing and most in-demand fields, it’s no surprise that more people are interested in becoming financial managers every day. Financial management is an exciting and rewarding profession that combines analytical skills, strategic thinking, collaboration, and ongoing learning opportunities. As a financial manager, you’ll oversee an organization’s financial health, develop strategies for long-term goals, and manage finance reports, investments, and cash flow.

Table of Contents

• Financial Management Overview
• What Education Do I Need for Finance?
• Career Path and Progression
• Growth Opportunities
• Start a New Career as a Financial Manager

Your career as a financial manager begins with earning a degree in finance, accounting, economics, or another related field that provides a solid foundation in financial principles. Later, pursuing advanced certifications or even a master’s degree can open further professional opportunities. Whether you’re a current or prospective student still deciding on a career path, someone already in the workforce ready for a change, or looking to earn your degree on your own schedule, a future in financial management could be for you.

This guide will outline the educational and professional steps toward becoming a successful financial manager.

Financial Management Overview

You might be wondering: what exactly is financial management? It refers to the comprehensive practice of planning, organizing, directing, and controlling an organization’s fiscal activities. Through skillful financial management, which includes efficient and effective allocation of resources, thoughtful budgeting, accurate forecasting, careful investment planning, and proper consideration of financial risks, organizations can maximize their value and achieve their goals for economic stability and growth.

Successful financial management requires a combination of technical skills, analytical thinking, and strategic planning. Financial managers use various tools and techniques to assess economic performance, identify areas for improvement, and implement corrective actions. While the job can be demanding and full of responsibilities, financial managers are highly valued within their organizations for their expertise and are well compensated.

What does a Financial Manager do?

Financial managers play a critical role in their organizations by providing the proper fiscal guidance and insights to support business goals and achieve long-term financial health and stability. They act as an important link between financial markets and their organizations, working to identify trends and risks, direct investment activities, and develop strategies for economic growth. With many responsibilities, a financial manager’s job is multifaceted and can involve a wide range of day-to-day activities:

• Compiling and Reviewing Financial Reports: Analyzing daily, weekly, monthly, and annual fiscal data to monitor the company’s financial status.
• Budget Management: Overseeing and managing the company’s budget to ensure financial efficiency and adherence to budgetary constraints.
• Cash Flow Monitoring: Tracking daily cash flow to ensure that the company has enough liquidity for its operations.
• Financial Forecasting: Developing and updating financial forecasts based on current data and market trends.
• Investment Analysis: Assessing potential investment opportunities and making recommendations based on risk and return.
• Risk Management: Identifying and mitigating financial risks through strategic planning and analysis.
• Supervising Accounting Staff: Leading and mentoring the accounting team, ensuring accurate and timely financial reporting.
• Preparing Financial Statements: Overseeing the preparation of balance sheets, income statements, and cash flow statements.
• Conducting Financial Audits: Ensuring that all financial activities comply with regulations and internal policies through regular audits.
• Cost Control: Identifying areas where costs can be reduced without impacting the quality of operations.
• Strategic Planning: Participating in the development of long-term financial strategies to support the company’s growth and stability.
• Regulatory Compliance: Ensuring that the company adheres to financial regulations and standards.
• Advising Management: Providing financial insights and advice to senior management to support decision-making.
• Managing Debt: Overseeing an organization’s debt obligations and working to optimize the debt structure.
• Stakeholder Communication: Communicating financial performance and strategies to stakeholders, including investors, board members, and other executives.

Work Environments

Financial managers work in various settings, reflecting the diverse nature of the role. They might work in:

• Corporate Offices: Managing the finances of large companies or organizations.
• Banks and Financial Institutions: Overseeing investment strategies and risk management.
• Government Agencies: Planning budgets and financial strategies for public sector organizations.
• Nonprofits: Ensuring financial stability and regulatory compliance for nonprofit entities.
• Consulting Firms: Providing financial advice and strategic planning for a range of clients.
• Remote Work: Many financial managers have the flexibility to work remotely, especially in today’s digital age.

What Education Do I Need for Finance?

A career as a financial manager begins with your education. Typically, aspiring financial managers pursue a degree in accounting, finance, economics, business, or a closely related field. The foundational education you’ll get in these areas of study provides essential knowledge of fiscal principles, accounting practices, and economic theories, all of which are fundamental to an eventual career in financial management.

A bachelor’s degree, such as a Bachelor of Business Administration (BBA) in Accounting or a Bachelor of Science in Financial Management, is often enough to qualify you for certain entry-level positions in finance—additionally, many educational institutions offer work placements, internships, or other opportunities to help you gain practical experience and strengthen your potential as an employee. However, in today’s competitive job market, many finance professionals further their education as a means of advancing their careers. A master’s degree in business administration, finance, economics, or accounting can provide a significant advantage.

Fortunately, both undergraduate and advanced degree programs offer flexible options. Many institutions offer online courses, evening classes, and part-time options that allow you to balance your education with work and personal commitments. This flexibility ensures that you can pursue a bachelor’s or master’s degree and move closer to becoming a financial manager at a pace that suits your schedule and career goals.

Certifications and Licensing

One of the best ways to advance your career as a financial manager is by obtaining specialized certifications, licenses, or other credentials that reflect your areas of expertise or experience. Consider some of the prominent certifications you might pursue as a financial manager:

• Certified Financial Manager (CFM): Offered by the Institute of Management Accountants (IMA), the CFM certification is designed for professionals aiming to showcase their expertise in financial management and ethics. It emphasizes the integration of fiscal and strategic planning, making it valuable for those in leadership roles and as an early stepping stone in the financial management field. The CFM credential demonstrates expertise in areas such as performance measurement, risk management, and decision-making.
• Chartered Financial Analyst (CFA): The CFA designation is a prestigious award from the CFA Institute and is highly regarded in the investment management and financial analysis sectors. It signifies a deep understanding of investment analysis, portfolio management, and ethical standards. Earning the CFA involves passing a series of rigorous exams and demonstrating substantial professional experience.
• Certified Public Accountant (CPA): The CPA credential is widely recognized and respected in the accounting and financial management fields. Licensed by state boards of accountancy, the CPA certification confirms proficiency in accounting principles, auditing, and taxation. It is essential for financial managers who must demonstrate expertise in financial reporting and regulatory compliance.
• Certified Treasury Professional (CTP): Offered by the Association for Financial Professionals (AFP), the CTP certification validates skills in corporate treasury and cash management, emphasizing corporate liquidity, risk management, and investments. It is particularly valuable for financial managers focusing on treasury operations and financial planning.
• Financial Risk Manager (FRM): Awarded by the Global Association of Risk Professionals (GARP), the FRM designation is focused on risk management and analysis. It indicates an ability to identify, assess, and mitigate financial risks and is important for financial managers involved in risk management, financial modeling, and regulatory compliance.

Key Skills for Financial Managers

Through an education in fiscal management, you will acquire and hone the following skills:

• Analytical Skills: Essential for interpreting financial data, identifying trends, and making informed decisions. Financial managers use these skills to analyze complex financial reports and forecasts.
• Attention to Detail: Financial managers are responsible for reviewing financial documents and transactions and ensuring compliance with regulations. They must do so with precise accuracy and reliability.
• Leadership and Management: Financial managers facilitate critical projects, oversee staff, delegate tasks, and ensure departmental and company-wide goals are met.
• Communication Skills: It’s important that a financial manager can clearly convey complex fiscal concepts and recommendations to stakeholders, including executives and board members, in an understandable and accessible manner.
• Problem-Solving: Developing and implementing effective solutions to financial challenges (budget shortfalls, investment risks, etc.) is essential to maintaining financial stability.
• Strategic Thinking: Long-term financial planning and aligning fiscal strategies with organizational goals requires a financial manager who can see the big picture and anticipate future needs and market conditions.
• Technical Proficiency: Financial managers need to be adept with accounting systems and financial modeling software and tools to analyze data and prepare reports.
• Ethical Judgment and Integrity: Maintaining trust and ensuring compliance with high ethical standards and regulations across all of an organization’s financial practices and decision-making is essential to success as a financial manager.

Career Path and Progression

Most financial management careers tend to follow a similar trajectory. Your path toward becoming a financial manager can begin even before you complete your degree. Internships, accounting assistantships, and other roles that serve as practical training opportunities are often available to aspiring financial managers in the early stages of their career journey. Once you gain some relevant industry experience, it will also be easier to secure a role at the entry-level, from which you can further develop your career.

Below, let’s explore some of the jobs available to those with a financial management education and their growth and earning potential (based on BLS records and other data).

Entry-Level Positions

Financial Analyst

Financial analysts help businesses and individuals make decisions about how to spend money to achieve a profit. They research and interpret data in order to inform investment strategies and provide advice. The role has a higher-than-average projected growth of 8% between 2022 and 2032 and paid a median annual salary of $99,890 in 2023.

Junior Accountant

Junior accountants assist with preparing financial statements, maintaining financial records, and performing basic bookkeeping tasks. They also help reconcile accounts, process invoices, and ensure compliance with financial regulations and company policies. In 2023, the role paid a median annual salary of $50,315.

Budget Analyst

Budget analysts prepare budget reports and monitor spending, helping public and private organizations plan their finances. The role is projected to grow at the average rate of 3% between 2022 and 2032 and paid an average annual salary of $84,940 in 2023.

Credit Analyst

Credit analysts evaluate the creditworthiness of individuals or businesses by reviewing and interpreting financial statements, credit reports, and payment histories. They assess risk and make recommendations on loan approvals, credit limits, and interest rates to minimize financial risk for their organization or client. The role paid an average annual salary of $58,675 in 2024.

Mid-Level Career Positions

Senior Financial Analyst

Senior financial analysts often work in more specialized areas that require further experience or credentials than entry-level financial analysts. One such role, financial risk specialist, earned a median annual salary of $106,090 as of 2023.

Accounting Manager

Accounting managers often oversee entire accounting departments, ensuring accurate financial reporting, compliance with regulations, and efficient financial operations. They manage staff, review financial statements, and develop financial strategies to support organizational goals. The role is projected to grow at a rate of 4% between 2022 and 2032.

Financial Reporting Manager

Financial reporting managers oversee preparation and distribution of financial reports, ensure accuracy and compliance with regulatory standards, and maintain alignment with company policies. They analyze financial data, coordinate with necessary departments, and present findings to senior management and stakeholders. The role paid a median salary of $101,000 in 2024.

Treasury Manager

Treasury managers manage their organization’s cash flow, liquidity, and financial risk management. They manage investments, optimize financial strategies, and ensure a company’s financial stability by monitoring cash positions and forecasting future financial needs. The role paid an average annual salary of $103,370 in 2024.

Growth Opportunities

With financial health critical to most organizations, including those in corporate finance, banking and financial services, healthcare, government, nonprofits, and more, there will always be a need for financial managers. In fact, according to BLS, financial management is one of the fastest-growing careers, with growth expected at a rate of 16% between 2022 and 2032—more than four times the average 3% projected rate across all occupations.

And not only is there a high and increasing demand, but there is clearly ample room within the industry to advance, especially if you obtain further education and other credentials beyond a bachelor’s degree. Additionally, the median annual salary was reported as $156,100 in 2023—more than three times the median annual wage for all workers of $48,060—making it an appealing and lucrative career.

Start a New Career as a Financial Manager

Financial management is a rewarding and challenging career with plenty of advancement opportunities, the chance to make strategic decisions, and the ability to impact your organization’s success. With strong job prospects, competitive salaries, and the ability to apply your expertise across various industries, it’s an excellent option for anyone considering a career change or interested in finance.

Ready to take the next step? Check out our Bachelor of Science in Financial Management and Master of Business Administration (MBA) in Financial Management Specialization programs designed to provide you with the skills and knowledge to succeed as a financial manager and the flexibility to achieve it at your own pace. Start your path with National University today!