AFO|Wealth Management Forward
  • Home
  • About
  • Services
    • Wealth Management
      • Investment Advisory Services
      • Financial Planning
      • Retirement Planning
      • Estate Planning
      • Tax Planning
    • Digital Marketing
      • Conversion Rate Optimization
      • Search Engine Optimization
      • Paid Advertising
      • Email Marketing
      • Content Marketing
      • Social Media Marketing
    • Branding
      • Web Design
      • Web Development
  • Podcast
  • Press
  • Schedule a call
BOOK A CALL
  • Home
  • About
  • Services
    • Wealth Management
      • Investment Advisory Services
      • Financial Planning
      • Retirement Planning
      • Estate Planning
      • Tax Planning
    • Digital Marketing
      • Conversion Rate Optimization
      • Search Engine Optimization
      • Paid Advertising
      • Email Marketing
      • Content Marketing
      • Social Media Marketing
    • Branding
      • Web Design
      • Web Development
  • Podcast
  • Press
  • Schedule a call

Qualifications & Skills for Accountants to become Financial Managers

AFO|Wealth Management Forward2022-10-17T06:47:28+00:00

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.

Read more: How to Become a Financial Planner

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.
References
  1. “Howard & Opton, Business Finance and Financial Management”. UpFina. Retrieved 2015-11-04. http://upscalingfinance.weebly.com/business-finance-and-financial-management.html
  2. Financial Managers, Bureau of Labor Statistics. Accessible From: https://en.wikipedia.org/wiki/Bureau_of_Labor_Statistics
  3. Budget Analysts, Bureau of Labor Statistics. Accessible From: https://www.bls.gov/ooh/business-and-financial/budget-analysts.htm#tab-2
  4. “Capital Structure Definition | Investopedia”. Investopedia. Retrieved 2015-11-04. Accessible From: http://www.investopedia.com/terms/c/capitalstructure.asp
  5. “Definition of Financial Management System (FMS) – Gartner Finance Glossary”. Gartner. Retrieved 2022-01-06. Accessible From: https://www.gartner.com/en/finance/glossary/financial-management-system-fms-

Author

AFO|Wealth Management Forward


Related Posts

Becoming an Indispensable Financial Expert

Financial advisors are the ones who influence the decision of their clients to take active steps, which will either build... read more

How to Become a Financial Planner

How to Become a Financial Planner

How to Become a Financial Planner Becoming a financial planner or advisor can be an extremely lucrative and rewarding career option.... read more

How to Add Wealth Management Services Into Your Accounting Firm​

Can Accountants Also Work as Financial Advisors?

Can Accountants Also Work as Financial Advisors? CPAs and Financial Advisors are two varied career paths in different industries. While the... read more

secure top talent

Client Onboarding Checklist for Agencies

Creating a client onboarding checklist is a careful task as different individual plans are tailored to different needs. read more

Advisory Accounting Service More Than Just Numbers

Formerly, it was thought that accounting was just about accounting methods, figures, and financial spreadsheets, which embody the level of... read more

HOW TO CHOOSE THE BEST LEAD GENERATION COMPANIES FOR ACCOUNTANTS

Social media remains one of the least tapped goldmines for lead generation. With over 4.15 billion active users, social media... read more

What is the difference between Series 65 and PFS exam?​

What is the difference between Series 65 and PFS exam?

What is the difference between Series 65 and PFS exam? The Series 65 exam and the (Personal Finance Specialist) PFS exam... read more

Unlocking the Benefits of Financial Workshops and Webinars​

Unlocking the Benefits of Financial Workshops and Webinars

Unlocking the Benefits of Financial Workshops and Webinars Samuel Feldman Founder and Editor in Chief, The Fintech Corner |  Finance Content Writer... read more

What is Accounting Advisory Services?

AFO|WMF program incorporates Risk and Wealth Management Advisory services is intended to help accounting firms monetize their current book. read more

Custom Financial Advisor Websites

Financial advisors must have a well-designed and strategic website as part of their digital marketing strategy. In today’s highly competitive... read more

JOIN OUR COMMUNITY
  • Wealth management
  • Digital marketing
  • Branding
  • Resources
  • Podcast
  • Contact
  • Press
  • Terms & Condition
  • Privacy Policy
  • Web Accessibility
Copyright © 2023 AFO Wealth Management Forward. All Rights Reserved.
Disclaimer: Results of enrolling in the AFO Wealth Management Forward program vary by participant and are not guaranteed. Arrowroot Family Office is a registered investment advisor and is not endorsing or promoting the sale of any security with this message.
JOIN OUR COMMUNITY
  • Terms & Condition
  • Privacy Policy
  • Web Accessibility
Copyright © 2023 AFO Wealth Management Forward. All Rights Reserved.
  • Wealth management
  • Digital marketing
  • Branding
  • Resources
  • Podcast
  • Contact
  • Press
Disclaimer: Results of enrolling in the AFO Wealth Management Forward program vary by participant and are not guaranteed. Arrowroot Family Office is a registered investment advisor and is not endorsing or promoting the sale of any security with this message.