A financial manager handles the accounting aspect of a company. They help handle finances and make sure all amounts are correct. A financial manager may have to deal with taxes, payroll and budgeting. Financial managers need to be able to keep track of large sums of money as well as record valuable transactions. The top 10 percent in this industry can bring in $120,000 or more each year on average, according to the Bureau of Labor Statistics (BLS).
Many financial managers have a bachelor’s degree in finance or accounting, although some employers prefer candidates with an MBA. According to the Bureau of Labor Statistics (BLS), the average salary of a financial manager is $90,400 per year as of May 2017, but some positions can pay much more.
The average starting salary for a financial manager is $43,600 a year.
Starting Salary For Financial Manager Overview
Are you looking for the right way to start your career as a financial manager? It can be tough to know where to begin, but we’re here to help.
First things first: what exactly does a financial manager do?
A financial manager works in accounting, finance, or auditing. They oversee the finances of their company or organization and ensure that they are meeting or exceeding all of their financial goals. They work closely with other departments, such as sales and marketing, to make sure that everything is running smoothly financially. Some financial managers also have other responsibilities outside of accounting—for example, they may have to oversee a business’s overall operations and growth strategy.
So how much does a financial manager earn? That depends on where they live! The median annual salary for financial managers nationwide is $81,010 USD per year ($42.96 per hour). But if you want to know how much your salary will be before you start working as one (or even after), there are some great resources out there that can help you figure it out:
What Financial Managers Do
Financial managers are responsible for the financial health of an organization. They produce financial reports, direct investment activities, and develop strategies and plans for the long-term financial goals of their organization.
Duties of Financial Managers
Financial managers typically do the following:
- Prepare financial statements, business activity reports, and forecasts
- Monitor financial details to ensure that legal requirements are met
- Supervise employees who do financial reporting and budgeting
- Review company financial reports and seek ways to reduce costs
- Analyze market trends to maximize profits and find expansion opportunities
- Help management make financial decisions
The role of the financial manager, particularly in business, is changing in response to technological advances that have substantially reduced the amount of time it takes to produce financial reports. Financial managers’ main responsibility used to be monitoring a company’s finances, but they now do more data analysis and advise senior managers on ways to maximize profits. They often work on teams, acting as business advisors to top executives.
Financial managers also do tasks that are specific to their organization or industry. For example, government financial managers must be experts on government appropriations and budgeting processes, and healthcare financial managers must know about topics in healthcare finance. Moreover, financial managers must be knowledgeable about special tax laws and regulations that affect their industry.
The following are examples of types of financial managers:
Controllers direct 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. Controllers also are in charge of preparing special reports required by governmental agencies that regulate businesses. Often, controllers oversee the accounting, audit, and budget departments of their organization.
Treasurers and finance officers direct their organization’s budgets to meet its financial goals. They oversee the investment of funds and carry out strategies to raise capital (such as issuing stocks or bonds) to support the firm’s expansion. They also develop financial plans for mergers (two companies joining together) and acquisitions (one company buying another).
Credit managers oversee their firm’s credit business. They set credit-rating criteria, determine credit ceilings, and monitor the collections of past-due accounts.
Cash managers monitor and control the flow of cash in and out of the company to meet business and investment needs. For example, they must project cash flow to determine whether the company will have a shortage or surplus of cash.
Risk managers control financial risk by using strategies to limit or offset the probability of a financial loss or a company’s exposure to financial uncertainty. Among the risks they try to limit are those that stem from currency or commodity price changes.
Insurance managers decide how best to limit a company’s losses by obtaining insurance against risks, such as the need to make disability payments for an employee who gets hurt on the job or the costs imposed by a lawsuit against the company.
What Is The Starting Salary For A Financial Manager?
The beginning salary for a finance manager is $51,712 a year. However, this can range from as low as $21,500 a year to as high as $115,000 a year. The most influential factors impacting how much a finance manager can earn are related to the location of the position and the type of company or industry.
Top paying cities for entry-level positions for a finance manager.
- New York City, NY – $61,407 a year ( $29.52 an hour)
- San Mateo, CA – $60,175 a year ($28.93 an hour)
- Juneau, AK – $58,537 a year ($28.14 an hour)
- Boston, MA – $58,498 a year ($28.12 an hour)
- Berkeley, CA – $57,878 a year ($27.83 an hour)
- Santa Monica, CA – $57,797 a year ($27.79 an hour)
- Daly City, CA – $57,715 a year ($27.75 an hour)
- Quincy, MA – $57,649 a year ($27.72 an hour)
- Renton, WA – $57,548 a year ($27.67 an hour)
- Minneapolis, MN – $56,783 a year ($27.30 an hour)
