Which among the financial managers responsibilities is the most important?

Finance managers are in charge of managing and optimizing the finances within a company. They create financial reports, perform data analysis, and monitor financial details – all in an effort to ensure a company’s continued viability. What does a financial manager do?

Role overview

Introduction
Responsibilities
Skills
Background
Salary

What is financial management?

Financial management is the process of managing a company’s financial resources. It is a vital activity that involves planning, controlling and analyzing a company’s cash flows by taking the company’s goals into account.

Every company needs forward-looking financial management to ensure long-term liquidity and to be able to make strategic investments without running into financial problems.

Role Overview – Financial Manager

It is therefore an essential part of any company, because only through this can the solvency and continued existence of the company be ensured. 

Financial decisions under financial management can be divided into three main categories namely, 

• Investment decisions
• Financing decisions and; 
• Dividend decisions

What are the responsibilities of a financial manager?

As mentioned above, financial managers control the financial planning within a company. They review, monitor and manage budgets and develop financial reporting systems. 

They also evaluate key figures, prepare business activity reports and are responsible for the strategic planning of finances. 

Responsibilities Of A Financial Manager

These managers make sure financial legal requirements are met and are in charge of predicting future financial trends. They advise on investment activities and oversee operations of the finance department.

Financial managers find ways to reduce or maintain a company’s costs and analyse market trends and competitors to discover business opportunities and maximize profits. They also liaise with auditors to make sure that the appropriate monitoring of company finances is maintained.

Responsibilities of a financial manager:

• Control the financial planning of a company
• Evaluate key figures
• Prepare business activity reports
• Strategically plan finances
• Ensure financial legal requirements are met
• Predict future financial trends
• Advise on investment activities 
• Oversee operations of finance department
• Find ways to reduce or maintain a company’s cost
• Analyse market trends and competitors
• Liaise with auditors to make sure that the appropriate monitoring of company finances is maintained

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What are the skills of a financial manager?

Financial managers have in-depth knowledge in the field of business administration, particularly in the fields of finance, accounting, taxes, controlling and bookkeeping. 

They are exceptionally skilled in mathematics and have a strong understanding of financial trends and general market patterns. They have experience working with financial software as well as Microsoft Excel. 

Skills Of A Financial Manager

These managers have extensive understanding of financial statistics and accounting principles, have the ability to review data and make relevant management decisions, and have strong knowledge of financial reporting.

They have excellent problem-solving skills, strong analytical thinking, commercial and business awareness, and the ability to manage time effectively. They also have strong communication skills.

Skills of a financial manager:

• In-depth knowledge in the field of business administration, especially in the fields of finance and accounting
• Strong mathematical skills
• Strong understanding of financial trends and general market patterns
• Experience working with financial software
• Experience working with Microsoft Excel
• Extensive understanding of financial statistics and accounting principles
• Ability to review data and make relevant management decisions
• Strong knowledge of financial reporting
• Excellent problem-solving skills
• Strong analytical thinking
• Commercial and business awareness
• Ability to manage time effectively
• Strong communication skills

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How do I become a financial manager?

The first step to becoming a financial manager is obtaining a Bachelor’s degree. This could be in the field of Finance, Accounting, Mathematics or Economics. You could also boost your chances of landing a good job by getting a Master’s degree.

Some financial managers also choose to specialize in certain sub-areas, such as accounting, taxes and compliance, statistics, etc.

In addition to degrees, you can enhance your resume by obtaining certifications online. You can find options for these down below:

• The Complete Finance Manager Course 2021
• Investment Risk Management
• Financial Management for Product Leaders
• Business Finance and Financial Modeling Certification Course
• Accounting for Decision-Making

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How much can I earn as a financial manager?

Since every economic company has a basic need for budgeting and the management of its finances, there is no typical industry for this profession. They can be found in all companies that have sufficient financial resources and the explicit need to fill this position. As such, the salary of a financial manager depends largely on what industry they’re in.

Financial managers who are just starting out can expect a salary of around $69,000 per year whereas senior managers can earn a salary of up to $170,000 per year. The national average salary for financial managers is around $108,475 per annual year.

In Germany, the salary range for managers is €51,000-€111,000 per year whereas in the UK, the range is £35,000-£79,000 per year.

Salary of financial managers:

Junior$69,000Average$108,475Senior$170,000

Salary range of financial managers:

US$69,000 – $170,00Germany€51,000 – €111,000UK£35,000 – £79,000

Salary of freelance financial managers:

Average rate Financial Managers (2022)$86/hr

On average, freelance Financial Managers charge $86/hour (freelancermap’s price and rate index in September 2022).

Freelance rates in Financial Management range between $51 and $101 for the majority of freelancers.

Considering a freelance rate of $86/hour, a freelancer would charge $688/day for an 8-hour working day.