The fields of accounting and finance are closely interrelated. For accounting students who aspire to high-paying managerial positions, that’s good news. An accounting degree can be an excellent educational background to prepare candidates for one of the many different and financially rewarding careers in financial management. Knowing the possible careers available in financial management can help aspiring financial managers better plan their educational and career paths to get the experience they need and reach their career advancement goals.
An Overview of Financial Manager Roles
Financial managers in any role play an important part in keeping a company or organization financially stable and successful. Creating and analyzing financial reports are important aspects of many careers in financial management. These reports help business leaders understand their expenses and profits and develop successful strategies for the future. They determine whether or not businesses have money to invest and which investment opportunities are the best choices for a particular situation. When companies are ready to grow, they rely on financial managers to develop a strategic course of action, determine how much money is necessary for growth and develop plans to attain that money, including accessing loans and issuing stocks. Financial managers in various roles also contribute to important decisions, such as expanding products and services and acquiring or merging with other companies. As the job title implies, financial managers oversee employees in finance, accounting, auditing and budgeting departments.
Roles within Financial Management
To some degree, the job responsibilities of professionals in financial management vary depending on the position. The United States Bureau of Labor Statistics (BLS) identifies half a dozen different types of financial manager jobs.
Some financial management positions are distinguished by the facet of the business they oversee. Cash managers supervise a business or organization’s cash flow over time to determine if the organization has too little cash, requiring it to take out a loan, or a surplus of cash that it could invest to bring in more money. Credit managers, in contrast, monitor every aspect of the organization’s credit business, from establishing requirements for credit-rating to reviewing collections. Risk managers put into place strategies to protect the organization against financial losses. Insurance managers make decisions on purchasing insurance to reduce risks such as lawsuits.
Other job titles in financial management are less obvious in communicating what exactly the professional does. For example, finance officers and treasurers deal extensively with budgets and the challenge of meeting the organization’s financial goals, including investments and plans for acquisitions and mergers. Controllers prepare a variety of reports that range from income statements and balance sheets to projections of future revenue.
Financial managers earn a median salary of $109,740 per year, which puts this career among the highest paying accounting jobs. With an educational background in accounting or a related field and a good deal of professional work experience, ambitious accounting and finance professionals can move into one of the many lucrative and prestigious high-level careers in financial management.