Financial Managers are responsible for the financial health of a company or organization. They provide advice on a variety of financial issues, from tax and estate planning to retirement, risk management, and insurance planning. Financial Managers also develop and implement the financial policies and systems of different organizations, establish performance standards, and prepare various financial reports for senior management. They are employed in all kinds of organizations, from public, private, commercial, and educational, to non-profit entities and government authorities and agencies.
The term “financial management” is extremely generic. It implies various responsibilities, tasks, and activities, which may or may not be performed by only one professional. The Financial Manager role must be interpreted in the context of the size and type of any given organization, industry segment, or profession.
Here’s a non-exhaustive list of common tasks Financial Managers are required to complete.
- Managing finances and budgets, collecting financial data, and assessing past performance, anticipating trends and developments, and planning policies accordingly for a company or organization.
- Planning, organizing, directing, controlling, overseeing, and evaluating the operation of an accounting, audit, or other financial departments:
- Developing and implementing the financial policies, systems, and procedures of a company or organization;
- overseeing the collection and analysis of financial data;
- coordinating the financial planning and budget process to meet their financial goals, as well as analyzing and correcting estimates;
- supervising the development and implementation of financial simulation models;
- evaluating financial reporting systems, accounting procedures, and investment activities in order to make recommendations for changes to procedures, operating systems, budgets, and other financial control functions to senior management;
- advising senior management on ideas on how to maximize the company’s profits;
- recruiting, organizing, training, and managing staff;
- establishing profitability standards for investment activities and handling mergers and/or acquisitions;
- supporting treasury management and cash flow forecasting;
- preparing consolidated monthly, quarterly, and annual accounting closes;
- assisting in tax compliance, transfer pricing analysis, cross-border tax items, and tax filings; and
- notifying and reporting to senior management about any trends that are critical to the organization’s financial performance.
- Acting as a liaison between the organization and its internal and external shareholders, the investing public, and both internal and external Financial Analysts.
- Directing the preparation of financial reports that summarize and forecast the organization’s financial position, such as income statements, balance sheets, and analyses of future earnings or expenses:
- Preparing special reports required by governmental agencies that regulate businesses; and
- analyzing and articulating business trends for stakeholders.
- Preparing and presenting financial statements and forecasts, as well as business activity reports.
- Monitoring financial details to ensure that legal requirements are met.
- Supervising employees in charge of carrying out financial reporting and budgeting.
- Reviewing existing financial reports and seeking new ways to reduce costs.
- Analyzing market trends to find opportunities for expansion or for acquiring other companies.
- Assisting management in making financial decisions.
The average Financial Manager salary is $94,497 per year or $48 per hour. This is around 2.9 times more than the Median wage of the country. Entry level positions start at $66,000 while most experienced workers make up to $132,000. These results are based on 200 salaries extracted from job descriptions.