A financial manager is a professional who supervises various business operations related to banking, finance, accounting, investment or risk analysis services. Financial managers work for many types of organizations in every industry. Most financial managers will have a bachelor’s degree related to finance, but more and more employers want job candidates who have a master’s degree.
Corporate Finance
A financial manager in charge of corporate finance will most likely report directly to the CFO. They will be responsible for overseeing critical areas including annual budgets, periodic forecasts and month-end close cycles, according to the Bureau of Labor Statistics. They may drive key initiatives related to process improvement implementation, new financial system upgrades and strategy development for capital markets. Before corporate financial managers lead quarterly and annual budget forecasting activities, they will generate and analyze various accounting and market reports. When they lead the monthly close process, which includes analysis, consolidation and reporting functions, they will coordinate with departmental leaders to reconcile discrepancies. They may develop templates, schedules and deadlines for departments in order to ensure operational consistency and financial accuracy. Corporate financial managers regularly work with internal auditors and analysts to deliver faster results, more accurate numbers and better quality of deliverables.
Financial Analysis
Some financial managers focus on data analysis and business intelligence. They usually supervise analysts who collect, evaluate and produce actionable insights from massive amounts of raw financial data. They proactively establish and maintain working relationships with senior management and department directors to facilitate support for data collection projects. They coordinate the analysis of data for capital acquisitions, long-range investments and strategic financial planning. These financial managers prepare in-depth analysis of financial trends to present to senior management. They may be asked to educate employees regarding the importance of data accuracy for financial planning purposes. They may plan and organize the workflows of various finance related departments to improve communication clarity and operational efficiency. They often direct the analysis of operational data to support management decisions. They actively participate in performance and process improvement initiatives.
Financial Compliance
Some financial managers only focus on maintaining compliance with internal policies, state laws, industry standards and federal regulations. These financial managers seek to understand, document and improve existing accounting controls and workflows. Based on their informal audits of revenue streams, they may recommend new controls or new methods to strengthen existing controls. They work cross functionally with all senior leaders to identify and resolve operational compliance. For example, they may review all customer contracts against government regulations in order to benchmark the level of accuracy and compliance. During this process, they are expected to identify new ways to implement standards and previously hidden financial vulnerabilities. These financial managers may partner with accounting leaders to ensure that mandatory reports are accurately based on GAAP accounting and government regulation standards.
Related Resource: What is an Investment Accounting Manager?
A financial manager may work in a health care organization to monitor and improve billing cycle and collections management functions. Some financial managers work with investment directors on new business development opportunities like joint ventures and mutually mergers. Financial managers who work in banks or insurance companies may focus on credit or risk analysis. Financial managers who are employed by private firms may also only deal with real estate, federal taxation or risk management.
