The requirements for an accountant to become a financial manager

Qualifications & Skills for Accountants to become Financial Managers

Financial management can be a very lucrative career that can lead to many growth opportunities in senior management. Financial managers make around $134,000 a year on average, which is in the top 10% percentile in the United States in terms of net income. The responsibilities of a financial manager include leading the finance and accounting team and maintaining the financial health of an organization. This is done by developing strategies that open opportunities for the long-term financial growth of the company. Producing financial reports based on analysis from financial statements to determine the financial health of the organization or producing reports on the investment opportunities of the company are also the day-to-day responsibilities of a financial manager. Lastly, financial managers ensure that all legal requirements are followed and met and that the financial employees in charge of budgeting and financial reporting are supervised.

In order to become a financial manager, one must have a bachelor’s degree in either accounting, finance, or business and also have at least five or more years of experience as an entry-level accountant or financial analyst. A master’s degree in either finance, business, economics, or business administration is often also required for the position. This is because a financial manager must have a broad and experienced knowledge base of the financial and accounting industries in order to succeed in the role.

Accountants, in particular, are in a great position to succeed as financial managers due to their broad skills and knowledge of the inner workings of the finances in a firm or organization. In order to do so, specific qualifications and skills need to be met. On top of the required Certified Public Accountant (CPA) certification needed for the entry-level accounting position, accountants need to make sure they continue their post-secondary education and obtain a master’s degree, as becoming a financial manager without one could prove to be very difficult. Because a master’s degree is not required to become a financial manager, many accountants choose to delay or skip this step as it can be expensive and delay their entry-level career opportunities.

On top of post-secondary education, accountants need to make sure they are learning and developing technical and leadership skills during their careers that will allow them to succeed in the financial management role. Financial managers are often very technically knowledgeable, understand forecasting and budgeting well, have good strategic and analytical skills, and are very knowledgeable in the financial and accounting industries. Accountants who are good with finance and numbers, communication, adaptation, problem-solving, and trustworthiness have the necessary qualities needed in order to succeed as a financial manager.

Certain technical skills can also be extremely beneficial to know as a financial manager. Skills like organization, time management, critical thinking, active learning, analytical knowledge, mathematical analysis, and proficiency with Microsoft Office Suite and Applications are all useful skills that will help accountants succeed as financial managers.

FAQs

What kind of qualifications are required to become a finance manager?

Employers often require at least a bachelor’s degree in finance or in a related field, such as economics, accounting, or business. Financial managers also are required to have at least five years of experience in finance-related positions, such as an accountant or financial analyst. Besides educational credentials, financial managers also need data analysis skills, leadership, reasoning, and accounting skills. After earning a bachelor’s, many financial managers often pursue a graduate degree and voluntary certifications or licenses to improve their skill set.

What skills does a financial manager need to perform well in their role?

Strong Excel skills are needed to succeed as a financial manager. Excellent ability to problem solve using data analysis along with solid analytical skills, understanding of the business process systems and its optimization. Financial managers also need to be communicable and comfortable interacting with all levels of management in multiple areas of the organization. Strong knowledge of financial reporting is also needed for the financial management role.

What is the difference between accounting and financial management?

Accounting involves reporting past financial transactions, whereas financial management involves planning for future transactions. Accounting gives the company’s past and current financial position. In contrast, financial management provides a holistic view of future business activities and provides valuable insight into the future generation of wealth for the company or organization.

What is the most important duty of a financial manager?

A Financial Manager is a key decision-maker for an organization or company. These professionals use financial data analysis and advise senior managers of a company on profit-maximizing solutions and ideas, which can help optimize company profits over time. This can be done by making well-thought-out, intelligent decisions for investment opportunities or optimizing spending funds to have the greatest possible return on investment.

What is the role of accounting in financial management?

The main functions of accounting are to oversee monetary transactions and to store and analyze financial information. Accounting is used to prepare financial statements for a company’s employees, leaders, and general public. Accounting also exists to ensure the payment of funds in and out of a company.