Financial reports are vital documents that must be maintained to effectively track how well an organization is performing monetarily. Whether to the U.S. Securities and Exchange Commission or to private shareholders, financial reporting is an essential business task that makes certain a company is following every legal and ethical standard. Due to the importance and complexity of this process, most organizations will hire a financial reporting supervisor to ensure it goes off without a hitch. Financial reporting supervisors are given managerial-level power in checking the company’s financial statements based on reporting guidelines to perfectly avoid scandalous issues. With their specialized knowledge in financial statement analysis, financial reporting supervisors often work with external auditors to monitor the accuracy of accounting procedures for good overall company health.
Salary
Based on statistics filed on Salary.com, the median annual salary for financial reporting supervisors working in the United States is $68,893, which rounds out to around $33 for a mean hourly wage. However, when bonuses, paid vacation, pensions, health insurance, retirement, and other benefits are added in, the total average compensation for financial reporting supervisors is $98,960 each year.
Beginning Salary
When just starting out in the profession, new financial reporting supervisors with little managerial experience often land in the bottom tenth percentile of earnings with a yearly salary around $49,059. As financial reporting supervisors gain additional experience and are promoted with more leadership responsibilities in larger firms, it’s possible to earn a six-figure salary upwards of $89,972 annually though.
Key Responsibilities
Financial reporting supervisors have the main duty of supervising the entire financial statement analysis process to ensure the highest level of quality possible. On a typical day, financial reporting supervisors may be involved in preparing monthly financial statements, reviewing accruals, certifying tax compliance, setting up ad hoc reports, guiding staff accountants, helping with internal auditing, implementing accounting policies, conducting continuous assessment, and creating quarterly earnings releases. Reporting supervisors are responsible for looking into every small detail of financial reports to ensure legal compliance. In some cases, financial reporting supervisors may provide strategies for the executive management team to reduce unneeded expenses and improve financial distribution.
Necessary Skills
In order to be successful as a financial reporting supervisor, you’ll need to have a mind for numbers and the mathematical skills to quickly discover any reporting errors. Having good communication skills is essential for financial reporting supervisors to collaborate with employees in the accounting department and auditors outside the organization. Due to the supervisory responsibilities, financial reporting supervisors should have leadership abilities to motivate other accountants to succeed. Being detail-oriented with strong organizational and multi-tasking skills is critical for managing large financial analysis projects. Financial reporting supervisors should also have good problem-solving skills to resolve errors in accordable with GAAP and SEC rules when necessary.
Degree and Education Requirements
Before you can jump into the fast-paced world of financial reporting, you’ll need to obtain at least a four-year bachelor’s degree from a regionally accredited institution. Many aspiring financial reporting supervisors will specialize their undergraduate major in accounting, finance, business administration, economics, or statistics. Taking elective courses in financial reporting, financial statement analysis, financial accounting, mathematics, and business law will be valuable. To outpace competition, many financial reporting supervisors have gone the extra step to attend graduate school. Achieving a Master of Accounting (MAcc), Master of Science in Finance (MSF), or Master of Business Administration (MBA) is a good investment for advancing towards leadership in financial reporting.
Pros and Cons of the Position
Working as a financial reporting supervisor comes with its fair share of advantages and disadvantages like any other profession. Of course, the most obvious benefit is the career’s high salary potential that can break through the six-figure mark with years of experience. A bachelor’s degree is typically sufficient for receiving a promotion as a financial reporting supervisor, even though an advanced degree opens more opportunity. Reporting supervisors can work in an array of settings for increased job stability and more choice in specialization. On the flip side, financial reporting supervisors usually find heated competition for new job openings. Many employers will only consider reporting supervisors with at least three to seven years of experience in the accounting or finance field. Pouring over records on a business’s cash flow is a typical desk job that can also become monotonous and cause stress.
Getting Started
While earning an appropriate education, it’s best that you get started early on crafting an impressive resume that highlights your skills in financial reporting. You won’t soar directly to the role of supervisor, but gaining experience in entry-level accounting work goes a long way to reaching promotion. You should take every opportunity to complete an internship, work part-time, or volunteer in a setting involved with financial statement analysis. Eventually, you’ll be able to work up from being a staff accountant, auditor, loan officer, or financial analyst to become a financial reporting supervisor. Once you obtain at least four years of full-time relevant work experience, you can consider building your professional credentials by becoming a Chartered Financial Analyst. Some financial reporting supervisors with a master’s degree and at least 150 hours in higher education choose to become Certified Public Accountants (CPAs) too.
Future Outlook
Our country remains one of the leading international financial centers, which means that economic growth around the world will result in a budding market for finance professionals. As companies begin to accumulate more revenue on their financial reports, there will be a growing demand for supervisors to check for any inconsistencies. According to the Bureau of Labor Statistics, employment of financial reporting supervisors and other financial managers is expected to grow by nine percent, thus creating 47,100 new jobs by 2022. Competition will likely continue to be strong though because job openings are fewer than graduates. Financial reporting supervisors with a master’s degree will find the best job prospects, especially in manufacturing, insurance, financial services, technology, government, and corporate management.
Overall, financial reporting supervisors play an integral role in making certain their organization maintains good overall financial health by tracking the accuracy of financial reports. Reporting supervisors often coordinate a company’s legal and financial teams to prepare financial filings that meet our government’s strict regulations. If you decide to works towards becoming a financial reporting supervisor, you’ll have the rewarding chance to analyze statements, trends, and decisions that impact the company’s budget.
Another excellent resource:
Your Accounting Career: Guide to Colleges, Scholarships, and Resources for College-Bound Students
