How to Become a Finance Manager
Who is a Finance Manager?
Financial managers are answerable for the financial strength of an association. They make financial reports, direct speculation exercises, and create plans for the drawn-out financial objectives of their organization. Financial managers have the obligation of regulating the funds of significant organizations, offices and everything in the middle. Alongside their groups, they organize bookkeeping and produce financial reports, income proclamations and benefit projections. To consent to different laws and guidelines, they should focus on detail. Besides working with numbers, financial managers should likewise help different individuals from their association comprehend their mind-boggling reports, which requires huge relational abilities. Financial managers face a seriously competitive market. The individuals who can likewise deal with the worldwide fund and the inexorably confounded universe of financial instruments and protections, including subsidiaries, will be the most marketable.
Role of a Finance Manager
The job of the financial manager, especially in business, is changing in light of innovative advances that have altogether decreased the measure of time it takes to deliver financial reports. Financial managers’ primary duty used to screen an organization’s funds, yet they currently accomplish more information investigation and prompt ranking directors on thoughts to augment benefits. They frequently chip away at groups, going about as business counsels to top administrators.
Financial managers ordinarily do the accompanying tasks:
- Prepare the financial articulations, business movement reports, and predictions.
- Screen financial subtleties to guarantee that legitimate prerequisites are met.
- Direct representatives who do financial detailing and planning.
- Survey financial reports and look for approaches to decrease costs.
- Examine showcase patterns to expand benefits and discover extension openings.
- Assist the board with settling on financial choices.
Financial managers invest quite a bit of their energy into breaking down information and prompting ranking directors on approaches to expand benefits. They frequently take a shot at groups, going about as counsels to top administrators. Financial managers must know about the themes, charge laws, and guidelines that are explicit to their association or industry. For instance, government financial managers must be specialists in appointments and planning forms; social insurance financial managers must get charging, repayment, and different business matters identified with human services.
Types of Finance Managers
The work and roles of Finance Managers vary as per the requirement of their organization as well as their own interest. The most prominent types of Financial Managers are given below:
- Cash Managers: These types of finance managers screen and control the progression of money all through the organization to meet business and speculation needs. For instance, they should extend income to decide if the organization will have a deficiency or excess of money.
- Controllers: These types of finance managers direct the planning of financial reports that sum up and conjecture the association’s financial position, for example, pay explanations, monetary records, and examinations of future income or costs. Controllers additionally are accountable for making unique reports required by legislative offices that direct organizations. Regularly, controllers administer the accounting, review, and spending branches of their association.
- Credit Managers: These types of finance managers regulate their association’s credit business. They set FICO assessment measures, decide credit roofs, and screen the assortments of past-due records.
- Insurance Managers: These types of finance managers choose how best to restrain an organization’s misfortunes by getting protection against dangers, for example, the need to make disability compensation for a worker who gets injured at work or the costs forced by a claim against the organization.
- Risk Managers: These types of finance managers control financial hazard by utilizing methodologies to restrain or counterbalance the likelihood of financial misfortune or an organization’s introduction to financial vulnerability. Among the dangers they attempt to restrict are those that originate from a cash or item value changes.
- Treasurers and Fund Officers: These types of finance managers direct their association’s spending plans to meet its financial objectives. They direct the speculation of assets and do techniques to raise capital, (for example, giving stocks or bonds) to help the association’s development. They likewise create financial designs for mergers (two organizations consolidating) and acquisitions (one organization purchasing another).
Finance Managers work in various companies in various roles. According to an estimate, the finance managers hold more than 6.5 lac jobs. Their division in various sectors is as given below:
|Finance and insurance||30%|
|Management of companies and enterprises||11%|
|Professional, scientific, and technical services||14%|
How to become a Financial Manager?
The candidates who wish to become a financial manager must have any one or more of the following degrees:
- Master of Business Administration (Finance): This is a two-year degree in which the students are taught the details of the finance sector, which is very important to become a financial manager. The admission into this course is usually made on the basis of an entrance test. However, the selection process varies from institute to institute.
- Master of Financial Controls (MFC): This is a two years graduate degree program which prepares the students to become a financial specialist. The average fee for this course is five lakhs. The candidate applying for this post must have completed their bachelor’s degree.
- Post Graduate Diploma in Financial Management (PGDFM): Working capital management, international finance and mergers, and acquisition are some of the major subjects of this course. This is an all-round course which prepares the students to start their career in the finance field. It is a three years course. This course is also available as a correspondence course in many institutions, so the students who are unable to go to college every day can also opt for it. It can be a great choice for working professionals who are looking to scale up in their career.
- Bachelor’s Degree in Finance and Accounting: This course trains the candidates to work efficiently in domains like investment analysis and management, banking, auditing, consulting and financial management. It is a three-year course and a great option for students looking to pursue a finance course at the undergraduate level.
- BA in Economics & Business Administration: This is a three-year course at the completion of which students will have a great opportunity to work in areas such as banking, finance and accounting. This is a fairly easy course and a great option for students who do not want to invest much effort into it.
Although there are no certifications required to become a finance manager, the students can try to clear the CFA exam and get the CFGA certificate. CFA stands for Chartered Financial Analyst, and it is a title provided by the American Institute of Certified Public Accountants (AICPA). The candidates must have completed their bachelor’s and must have a minimum of 2 years of experience to apply for this certification.
Entrance Exams for Financial Manager Courses
1. Undergraduate (UG)
- AIMA UGAT
- DU JAT
- GGSIPU CET BBA
- Symbiosis Entrance Test
2. Postgraduate (PG)
- AIMA-MAT (Management Aptitude Test)
- CAT (Common Admission Test)
- CMAT (Common Management Admission Test)
- IBSAT (IBS Aptitude Test)
- IIFT (Indian Institute Of Foreign Trade)
- MAH – MBA/MMS CET (Maharashtra MBA Common Entrance Test)
- MICAT (MICA Admission Test)
- NMAT By GMAC
- SNAP (Symbiosis National Aptitude Test)
- XAT (Xavier Aptitude Test)
- Aligarh Muslim University Ph.D. Entrance exam
- Faculty of Management Studies (FMS), Delhi University Ph.D. entrance test
- IIIT Delhi Ph.D. Admission Test
- Indira Gandhi National Open University (IGNOU) Entrance Exam
- Research management aptitude test R-MAT
- Symbiosis University Ph.D. Entrance Examination
- UGC NET
- XIMB-RAT (Research Aptitude Test)
Careers Related to Finance Manager
- Accountants and Auditors
- Budget Analysts
- Financial Analysts
- Insurance Sales Agents
- Insurance Underwriters
- Loan Officers
- Personal Financial Advisors
Top Recruiters of Finance Managers
- Bajaj Capital Limited
- Canara Bank
- Central Bank of India
- DSP Merrill Lynch Limited
- HDFC Bank
- ICICI Bank
- IDBI Bank
- Indian Overseas Bank
- Karvy Group
- Kotak Mahindra Bank
- L & T Finance Limited
- SBI Capital Markets Limited
- State Bank of India
- Union Bank of India