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Financial managers handle budgets, tax laws and regulations, and business expansions. These professionals may hold titles such as controller, treasurer, finance officer, and credit manager.
Financial managers work closely with finance departments and chief executives who monitor companies’ overall financial health. While most organizations need some type of financial manager, the largest employers of financial managers work in insurance, finance, and scientific or technical services.
Most financial managers hold at least a bachelor’s degree and five years or more of relevant work experience. Successful finance professionals in this field also possess strong communication, math, and problem-solving skills, along with a desire to keep track of complex financial data and changes in their chosen industry.
This page offers a detailed look at financial managers’ roles in today’s top industries. Read on to learn about hard and soft skill requirements, common financial manager career pathways, salary figures, and how to become a financial manager.
Explore This Page: Required Skills | How to Become a Financial Manager | Degree Requirements | Interview With a Financial Manager | Career and Salary Outlook | Top Locations for Financial Managers | FAQs
What Does a Financial Manager Do?
Financial managers analyze data that informs their business activity reports and financial forecasts. They advise senior managers to maximize profits and reduce costs. This complex work often involves maintaining extensive records, watching market trends, and guiding investment strategies.
Advancements in bookkeeping technology and software help financial managers better analyze data to understand marketplace changes and form financial forecasts. They also communicate with top executives to offer the latest insights and guidance regarding assets and investments.
ADVANCEMENTS IN BOOKKEEPING TECHNOLOGY AND SOFTWARE HELP FINANCIAL MANAGERS BETTER ANALYZE DATA TO UNDERSTAND MARKETPLACE CHANGES AND FORM FINANCIAL FORECASTS.
Depending on their specific positions, these professionals must keep up to date with government regulations, broader conditions of their industry, and logistics challenges.
Key Soft Skills for Financial Managers
Communication: Financial managers need to speak, write, and present information clearly to explain financial data to executives and make recommendations.
Organization: These managers analyze and synthesize large amounts of information from various sources.
Leadership: Financial managers may lead financial consulting teams or advance to executive leadership roles.
Attention to Detail: These professionals must pay close attention to financial data and correct errors in financial reporting, budgeting, and forecasting to ensure legal compliance.
Key Hard Skills for Financial Managers
Accounting: Financial managers need accounting skills to understand and discuss financial reports when working closely with accountants and executives.
Technical Skills: Although systems and technologies vary by organization, financial managers usually need skills in data and financial technologies, such as QuickBooks, SAP, or Hyperion.
Data and Financial Analysis: Quantitative skills allow financial managers to review company and market financial data to identify risks and opportunities.
Financial Reporting: Financial managers ensure that company financial reports comply with tax regulations and laws. These managers also create, review, and present financial reports to executives.
A Day in the Life of a Financial Manager
Daily activities differ based on employer and position. These managers typically perform financial and market analysis, executive financial advising, and personnel management. Analysis helps financial managers increase profits. They identify opportunities to cut costs and expand through acquisitions, mergers, and investments.
Financial managers also prepare financial reports, ensure legal compliance, and oversee budgeting duties. As managers of financial departments or branches, these professionals may also participate in the hiring, training, and supervision of finance staff.
On a given day, financial managers may:
Monitor accounts and cash flow.
Review budgets and reports.
Identify cost-cutting opportunities.
Prepare financial reports and forecasts.
Track and analyze market patterns.
Identify growth opportunities.
Present financial data.
Make recommendations to executives.
Set financial goals.
Participate in strategic planning.
Oversee legal and regulatory compliance.
Supervise financial staff.
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How to Become a Financial Manager
Aspiring financial managers usually begin their careers by earning bachelor’s degrees in accounting, finance, or other business fields. This step usually takes about four years of full-time enrollment and may include internships with local businesses.
Some financial manager degree-holders at the bachelor’s level can enter the job market after graduation to obtain entry-level jobs in finance, business, or accounting. Many employers hire and train financial managers from within company ranks. Professionals who demonstrate talent and success in lower-level jobs can often work their way up to management roles.
Professional certifications, such as chartered financial analyst or certified public accountant, can help graduates demonstrate their preparedness for finance careers. These certifications often require at least a year to prepare for and pass related examinations.
When combined with relevant professional experience, a master’s degree in finance, economics, or business administration can help a candidate stand out from the competition. These degrees signify advanced proficiency in areas such as financial modeling, theory, and markets.
Do You Need a Degree as a Financial Manager?
Effective financial managers usually need an education that cultivates advanced financial analysis and decision-making skills and competency in finance software. Employers typically require a bachelor’s degree in finance or a related field, such as economics, accounting, or business.
Financial managers also need at least five years of experience in finance-related positions, such as financial analyst or accountant. Some employers offer training opportunities for finance employees looking to advance to management positions.
Many employers prefer job applicants with advanced business-related degrees, such as MBAs in finance. This versatile degree combines a core business and management curriculum with specialized finance courses to help finance professionals pursue upper-level careers. Professionals with MBAs in finance make an average salary of $101,000, according to December 2021 Payscale data.
Explore top schools for online MBAs in finance
Learn more about chief financial officers
Insights from a Financial Manager
Portrait of Michael Hammelburger
Michael Hammelburger
Michael Hammelburger received his MBA from the Loyola University Sellinger School of Business in Baltimore, Maryland, in 2010. Since then, Michael has worked as a financial consultant for small and mid-sized businesses. In 2019, Michael founded the Bottom Line Group, a consulting firm helping companies reduce their expenses by thousands of dollars by focusing on areas not typically looked at by the leadership team.
COLLAPSE ALL EXPAND ALL
Why did you get into financial management and consulting? What initially interested you about the field?
What does your typical workday look like?
What are some of the most rewarding aspects of working in finance? Some of the most challenging aspects?
Why did you decide to pursue an MBA?
How did your MBA prepare you for your current career?
What was the career path that led you to this position? What do you think helped you most on your journey towards financial management?
What advice would you give to students considering a career as a financial manager?
Financial Manager Career and Salary Outlook
The Bureau of Labor Statistics (BLS) projects employment for financial managers to grow by 17% from 2020-2030. The BLS attributes this positive job outlook to upward trends in the general economy. However, demand for financial managers varies by industry and experience level — these projections may change based on economic and industry shifts.
THE BUREAU OF LABOR STATISTICS (BLS) PROJECTS EMPLOYMENT FOR FINANCIAL MANAGERS TO GROW BY 17% FROM 2020-2030.
Due to financial crises, regulatory reforms, and increased globalization, the BLS projects increased demand for financial managers specializing in risk management or cash management. Payscale data indicates that financial managers earn strong salaries. However, income for this profession varies based on several variables.
Financial Manager Salary Expectations
Financial managers earn a median annual salary of $134,180, according to the BLS. However, salary levels vary with industry, location, position, and credentials. Financial industries, such as banking, usually pay higher salaries than government roles.
Aside from banking and other financial sectors, these managers earn strong salaries in cable and other subscription programming industries. Experience also factors into financial manager salaries, as illustrated in the table below.
Average Annual Salary of Finance Managers by Experience, 2021
Line chart with 4 data points.
VIEW AS DATA TABLE, AVERAGE ANNUAL SALARY OF FINANCE MANAGERS BY EXPERIENCE, 2021
The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying . Range: 50000 to 110000.
End of interactive chart.
Where Can I Work as a Financial Manager?
Nearly every organization requires financial management, so financial managers can pursue careers in various sectors, industries, and geographical locations. Major metropolitan areas offer many lucrative opportunities, but this high pay often comes with a high cost of living. The following section discusses how job opportunities and high salaries for financial managers cluster in certain areas and industries.
Top Locations for Financial Managers
Geographical location often influences financial manager salaries and employment opportunities. According to the BLS, New York and New Jersey offer the highest average annual wage for financial managers, followed by Washington, D.C., Delaware, and Colorado.
These states have more competitive job markets with higher cost of living figures. California employs about twice as many financial managers as other states. The tables below offer specific salary and employment numbers for 2020.
Entry requirements, skills and interests (finance manager)
Precise entry requirements will vary, depending on the role and level.
Entry requirements
There are a variety of entry routes into a career in financial management. The following are general entry requirements. For specific entry requirements check the person specification for individual job vacancies and see our examples below.
with moderate to high grade GCSEs and/or work experience
with A levels/equivalent
as a graduate
if you already have management experience
With moderate to high grade GCSEs and/or work experience
You can join the NHS administrative level and work your way up into management through supervisory level positions, supported by in-house and external training schemes. For most junior positions, you will need 4 or 5 GCSEs at Grades A-C or equivalent. Employers may also consider applicants with fewer formal qualifications if they can demonstrate they have the right skills, for example, previous clerical experience. There are sometimes opportunities to enter financial roles through an apprenticeship
Find out more about support roles within finance
With A levels/equivalent
If you have 2 or 3 A-levels or equivalent vocational qualifications you may be able to start at a higher administrative grade, leading to a supervisory role and then into management. Internal and external training schemes, for example in communications skills or budget management, will assist your progress and enable you to apply your academic skills to work situations. Previous work experience can be an advantage. There are sometimes higher apprenticeships available
As a graduate
If you have a degree or equivalent vocational qualifications you can apply for junior management posts or apply for entry on the NHS Graduate Management Training Scheme in which you can specialise in finance management. As well as the fast-track graduate scheme, depending on your degree and your employment experience, you may be able to apply directly for junior management vacancies. Alternatively, you can join an NHS trust or other health-related organisation in an administrative role, gain experience of staff supervision and move on into management with appropriate training and support.
If you already have management experience
We welcome applications from people who have already built up financial management experience in the private sector or in other public or voluntary organisations. You can often join at a level corresponding to your skills and expertise. Some managers are recruited directly for specific positions.
Find out more about the training you’ll receive for a career in financial management
Entry requirements, skills and interests (finance manager)
Precise entry requirements will vary, depending on the role and level.
Entry requirements
There are a variety of entry routes into a career in financial management. The following are general entry requirements. For specific entry requirements check the person specification for individual job vacancies and see our examples below.
with moderate to high grade GCSEs and/or work experience
with A levels/equivalent
as a graduate
if you already have management experience
With moderate to high grade GCSEs and/or work experience
You can join the NHS administrative level and work your way up into management through supervisory level positions, supported by in-house and external training schemes. For most junior positions, you will need 4 or 5 GCSEs at Grades A-C or equivalent. Employers may also consider applicants with fewer formal qualifications if they can demonstrate they have the right skills, for example, previous clerical experience. There are sometimes opportunities to enter financial roles through an apprenticeship
Find out more about support roles within finance
With A levels/equivalent
If you have 2 or 3 A-levels or equivalent vocational qualifications you may be able to start at a higher administrative grade, leading to a supervisory role and then into management. Internal and external training schemes, for example in communications skills or budget management, will assist your progress and enable you to apply your academic skills to work situations. Previous work experience can be an advantage. There are sometimes higher apprenticeships available
As a graduate
If you have a degree or equivalent vocational qualifications you can apply for junior management posts or apply for entry on the NHS Graduate Management Training Scheme in which you can specialise in finance management. As well as the fast-track graduate scheme, depending on your degree and your employment experience, you may be able to apply directly for junior management vacancies. Alternatively, you can join an NHS trust or other health-related organisation in an administrative role, gain experience of staff supervision and move on into management with appropriate training and support.
If you already have management experience
We welcome applications from people who have already built up financial management experience in the private sector or in other public or voluntary organizations. You can often join at a level corresponding to your skills and expertise. Some managers are recruited directly for specific positions.
