How To Become a Financial Manager
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Read time 7 minutes
Published on Sep 11, 2024
Read time 7 minutes
Published on Sep 11, 2024
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Approved by the academic program manager of the Colangelo College of Business on Aug. 19, 2024.
The views and opinions expressed in this article are those of the author’s and do not necessarily reflect the official policy or position of Grand Canyon University. Any sources cited were accurate as of the publish date.
Every company has a lot of moving parts, including employees whose primary purpose is to design new products, create marketing campaigns or provide customer service. The jobs that these employees perform all have one thing in common: a goal of maximizing profits and growing the company. But how do companies stay on track toward their long-term objectives and maintain their fiscal health?
This is the job of the financial manager. What does a financial manager do, and is this career right for you? Explore this detailed career guide to learn how to become a financial manager and decide for yourself if pursuing this career path may be the right choice for you.
Financial managers need to be able to draw upon a wide range of both hard and soft skills to do their work effectively. Their technical competencies enable them to perform tasks such as financial analysis and reporting, but their soft skills allow them to collaborate with others, communicate their findings and recommendations and supervise other finance-related employees.
As you work on completing the financial manager education requirements, you should actively strive to develop the following skills:2,3,6
The median annual wage for financial managers can depend on their years of experience, specialty area, professional certifications, employer and geographic location, among other factors. According to the U.S. Bureau of Labor Statistics (BLS), the median annual salary for financial managers as of May 2023 was $156,100.7
According to the BLS, there is expected to be a robust expansion in the number of job openings for financial managers in the years to come. From 2022 to 2032, the BLS Occupational Outlook Handbook estimates job growth for financial managers to be 16%, much faster than average, accounting for an estimated increase of 126,600 new jobs in the field.8
Financial managers may have a range of academic backgrounds and experiences. There is no universal pathway toward becoming a financial manager. However, employers will expect you to have a firm grasp on finances and various business topics. It’s ideal to earn a degree that focuses on finance, economics, business or a related discipline.3
You may even be able to find a degree that focuses on both finance and economics. In this case, you will likely work through a curriculum that explores topics such as managerial accounting, micro and macroeconomics, business law, investments and financial markets.
Finance and economics degrees vary, but will typically include topics such as:
Aspiring financial managers can benefit from having a broad range of business competencies in areas such as business law, accounting practices and principles, financial analysis and others.2 To be successful at their work, financial managers must be able to understand how the business is currently doing and how to best support it in achieving its mission for the future.
In order to work through a broad curriculum that combines technical competencies with important soft skills, you may want to consider applying to any of the following degree programs:
You may find multiple financial managers, each with their own specialty, at larger corporations. Here’s a look at some of the financial manager specializations:
Now that you know the answer to the questions, What is a financial manager, and what does a financial manager do? you may be curious about the typical career path. If the job description of a financial manager appeals to you, there are some steps you can take toward meeting the financial manager education requirements.
If you’re still in high school, you can talk to your school counselor about your career goals and course schedule. Try to add as many relevant classes as possible throughout the remainder of your high school years. Aspiring financial managers must have strong math skills, so try to take as many math classes as possible.3
Financial managers are expected to have at least a bachelor’s degree. There are no universal requirements regarding the type of college degree you’re expected to have. However, you should look for a bachelor’s degree program in accounting, finance, economics, business or a related discipline.3
There are various certificates that you can earn to improve your communication and leadership skills. These certificates can help you gain specialized knowledge and prepare you for your career field.
During your time in college, you can look for internship opportunities in the business world. Completing one or more internships may help you after graduation when it’s time to apply to jobs.4 Look for internships that can allow you to apply what you’ve been taught in school to practical settings. Regardless of which organization you work at, you’ll have opportunities to acquire experience and develop a professional network.
The job of a financial manager is typically not an entry-level one. In order to pursue this career, you can expect to first gain some entry-level work experience.
Some examples of careers you might first apply to include:3
Professional certifications aren’t strictly necessary, but they may help you in the job market.5 Financial managers who work within government agencies may pursue the Certified Government Financial Manager (CGFM) designation from the Association of Government Accountants (AGA), for example. Or, you might pursue the Chartered Financial Analyst (CFA) designation from the CFA Institute or the Certified Treasury Professional (CTP) credential from the Association for Financial Professionals (AFP).3 Accounting professionals may consider licensure and sitting for the Certified Public Accountant exam, as administered by the Association of International Certified Public Accountants (AICPA).
Now that you understand the basics of how to become a financial manager, you may be ready to take the next step toward pursuing your career. As you work through your degree program and apply to internship opportunities, try to see challenges and obstacles as opportunities for personal growth. Take advantage of networking events whenever possible and look for opportunities to learn more about financial management for various industries and sectors.
Businesses of all types and sizes need to carefully monitor their financial health. It’s the job of the financial manager to track the organization’s finances — from analyzing the data and creating reports to strategizing investments and developing long-term plans. What is a financial manager’s core area of responsibility? Their tasks generally include the following:2
Analysis
Financial managers analyze the business’ finances and activities, as well as overall market trends.
Reporting
They develop financial statements, forecasts and reports on business activities and communicate their findings to decision-makers.
Supervising
Financial managers may supervise other employees and direct their finance-related activities.
Compliance
They oversee financial data to ensure that the business is in full compliance with all applicable laws and regulations.
Cost efficiencies
Financial managers may review the reports they’ve prepared to identify ways to optimize the business’ expenditures.
Strategizing
Financial managers help leaders make strategic financial decisions and identify opportunities for expansion and growth.
Financial managers keep a close eye on the current business activities and finances of the business, but they generally maintain a proactive, forward-looking mindset. In order to align the company’s finances with its long-term objectives, financial managers look for opportunities to maximize profitability.
A financial manager can look for work across various sectors and industries. These can include:9
Finance and Insurance
Investment firms, banks and insurance companies rely on financial managers to inform financial decision-making.
Government
Government agencies rely on financial managers to keep careful track of budgeting, expenditures and more.
Manufacturing
Manufacturing companies are just some of the private companies that may hire financial managers.
Nonprofit Organizations
Nonprofits need to carefully monitor and track their finances to ensure they can fulfill their mission and serve those in need.
The job of a financial manager isn't an entry-level position, and after spending years working your way up to this level, you might decide to stick with it for the remainder of your career. On the other hand, advancement opportunities may be available. Some financial managers may go on to become chief financial officers (CFOs). CFOs are executives in the C-suite of a corporation. They are responsible for the overall financial reporting of the organization.3
If you have a knack for numbers and a passion for business, then the financial manager career pathway could be right for you. Build a foundation for the future at Grand Canyon University, where you can earn a Bachelor of Science in Finance and Economics or a related business degree.
