Financial Manager Investigative Report
Managerial economics is among the growing and essential fields in business because of the growing economies in various parts of the world. Managerial economics mainly focuses on helping managers within an institution to come up with rational solutions essential for strategic decision-making. One of the departments in managerial economics is the financial management function. A financial manager helps an organization make strategic financial decisions, and thus it requires an individual with a strong background in managerial economics and communication to help steer an organization in the right direction. The core focus of this paper is to offer an investigative report on the job of a financial manager. The paper will, therefore, discuss what the role of a financial manager entails, the required skills and knowledge along with the essential role of communication in this job position.
Financial Manager Definition, Roles, and Skills
Basic Definition
At the core of financial management is administering the financial activities that affect the resources within an organization. This background information thus can help in defining financial management and putting it in context based on its scope of operations. Brigham and Houston (2016) defined financial management as the organic function in a company involved in planning, organizing, and administrating the financial activities like procurement and utilization of financial resources in a company. In other terms, the role of a financial manager entails the application of the general managerial principles to the financial resources of an organization.
Duties
The provided definition offers insight into the roles and responsibilities of a financial manager in any organization, and they surround the need to make sound financial decisions that can help a company manage its resources effectively. The key responsibility of an individual working in managerial finance is ensuring the financial health of the company (Monster, n.d.) The key duties aimed at achieving this includes producing financial reports and developing strategies by using financial research. According to Monster (n.d), the other duties of a financial manager is monitoring the daily financial operations within an organization, and this includes administering payrolls, invoicing, and any other transactions both in and out of the company. The other duty of a financial manager is to estimate capital requirements. It is the responsibility of a financial manager to estimate the capital requirements of a business, and this relies on the expected profits and costs along with future programs and policies to determine capital composition (Juneja, n.d.). The other duties, according to Monster (n.d.) include:
- Overseeing the financial departments workforce
- Tracking the organization’s financial performance and status to determine areas of improvement.
- Researching and analyzing financial reports and trends in the industry of operation.
- Presenting financial reports to the board of directors.
Skills Required
Becoming a successful financial manager requires more than good grades in school. The career path requires that an individual possesses certain skills that will propel them to become an effective financial manager. The role of a financial manager primarily deals with analyzing financial information and communicating that information so that it can be used to make organizational decisions. In turn, this shows that one of the essential skills that a financial manager must have is good oral and communication skills. As a manager, the financial manager is tasked with the duty to administrate workers in different departments to ensure that every financial decision is effective in helping the organization achieve its objectives (Indeed, 2020). The other skill that a financial manager must have is the analytical capacity. This skill is imperative when it comes to understanding and interpreting financial data for strategic decision-making in the company (Indeed, 2020). A financial manager must also possess problem-solving skills. Businesses are continuously faced with many challenges that they must address. It is because of this that the financial manager needs to know how to address the challenges and determine a solution that will ensure a healthy financial status.
Best Personality Traits
Personality traits are important in the management position, especially in demanding roles such as a financial manager. The key personality trait that a financial manager must have is integrity. Integrity goes hand in hand with honesty. Managing the finances of an organization requires that a person is honest with how they are handling the organizational financial resources and information provided for making decisions (Indeed, 2020). A financial manager must also be a leader. This is based on the fact that the role entails leading a team of people requiring excellent communication and teamwork to steer the workforce and organization in the right direction.
Required Technological Skills
The main technological skill valuable for a financial management position in any organization is computer literacy. Today, everything runs on technology, and it means that a financial manager must have the capacity to use a computer and various types of software in collecting and analyzing financial data (Indeed, 2020). It means that the financial manager must know how to use different kinds of software like QuickBooks, Sage, and Excel in manipulating financial data to gain and communicate relevant information.
Required Background Knowledge
A financial manager is a demanding role that requires individuals with significant and comprehensive financial and management knowledge. According to Target Jobs (n.d.), employers today require hiring individuals with at least an advanced degree in finance, accounting, business, and economics, along with years of experience in a finance position. Target Jobs (n.d.) added that for an individual to have high chances of being selected into this managerial position, they must have a master’s degree in finance, economics, business administration, or accounting.
Career Growth and Outlook
Finance managers often start pursuing a course in finance. The career growth begins when an individual earns a bachelor’s degree in finance, economics, or economics. At this point, an individual looks for opportunities of gaining experience in a finance department, as this should play a significant role in the added years of experience. The next step is earning a master’s degree in finance, economics, or accounting complemented with on and off job training opportunities. It is after this that an individual can earn relevant certifications and licensures in their particular field.
It is estimated that employment in managerial finance will be growing in the coming years. The US Bureau of Labor Statistics (2018) estimated that percentage growth between the years 2018 and 2028 is 16%, and this translates to the idea that the employment change between the years is 104,700. It then shows that there will be significant growth in career opportunities in financial management.
Writing and Communication Done in the Career for Employees and Managers
Communication is an essential part of financial management. A financial manager interacts with the board of directors, employees, and external stakeholders, and this means that the manager must possess good writing and communication skills. The main type of writing and communication performed by financial managers is budget preparation. Budget preparation involves using financial figures both in the present and past to develop the knowledge required in making decisions. A financial manager must not only know how to interpret the data but also how to communicate it to the relevant stakeholders so that they can understand the financial status of the organization. The other type of writing a financial manager does is a financial statement. A financial statement is a formal record of financial activities that a business has been involved in to make decisions (De Franco et al., 2011). It then means that financial managers thrive on good writing and communication. Good writing and communication in this managerial position refer to communicating ideas comprehensively and coherently. Comprehensive communication is shared information that has all the necessary details that ensure that it makes sense to the targeted audience. Coherent communication, on the other hand, is that which ensures that ideas flow logically so that the audience can make sense of the shared ideas.
Conclusion
In summary, a financial manager is tasked with the responsibility of managing financial resources and translating the financial information to a standard that is relevant to the associated parties. In turn, this means a financial manager must have applicable knowledge in the field of finance and related subjects. At the same time, a person applying for this position in this organization must have years of experience in the field of finance and accounting, along with leadership skills. Nonetheless, among the essential skills that a financial manager must have is writing and communication, as this enables a financial manager to translate the knowledge of the company’s financial status and operations to the stakeholders for decision-making.