Financial management is key to the effective functioning of an organisation and the finance manager plays a crucial role in organisations of all sizes. Finance managers work closely with other departments and ensure that everything runs smoothly. They help other members of their organisation understand the numbers by breaking down and simplifying complex finance reports.
According to the U.S. Bureau of Labor Statistics (BLS), job opportunities for financial managers are projected to grow by 16% between 2022 to 2032. This growth rate is faster than the average for all other occupations. This is due to the increasing complexity of financial regulations, the globalisation of business, and the need for skilled financial professionals to help organizations manage their finances effectively.
The need for a knowledgeable workforce to assess investment opportunities and make financial decisions will continue to drive demand for careers in finance. With a higher level of education, industry-recognised certification and experience finance managers can pursue advanced roles in this field to take on more responsibilities with a higher pay scale.
A Finance Manager's role is dynamic and their duties differ based on the industry they are working. Pursuing Top Finance Certifications will prepare you for challenging roles in the finance sector. There are various short-term finance courses available that will upskill you and enhance your career prospects in Finance. The important roles of a finance manager include:
Finance managers are responsible for maintaining financial records, managing budgets and analysing financial reports to help make financial decisions. If you are looking forward to starting your career in finance you should be aware of the responsibilities of Finance Managers. Some of the critical responsibilities of a financial manager include:
Finance managers help the organisation raise funds through equity and debt. It is one of the primary responsibilities of finance managers to strike a balance between equity & debt and maintain the right amount of debt-equity ratio. It is necessary to keep enough cash and maintain liquidity to meet the organisation's daily requirements. The finance manager should know how to operate on a strategic and tactical level to maintain financial stability.
Once financial managers raise funds, the next step is to allocate the funds optimally. Diversification of assets and proper allocation of funds is a critical financial decision that influences the overall organisational activities. It is the responsibility of the finance managers to ensure the fund is allocated in the right manner across the various departments of the organisation. The finance manager has to communicate effectively with other departments to avoid misappropriation of funds. The finance managers also have to take into consideration these factors for the allocation of funds:
Profit earning is essential for the survival of any organisation. Profit is generated by various factors, including pricing, the competition between companies in an industry, the mechanism of supply and demand, and cost and output. It is the responsibility of the finance manager to find ways to boost the profitability of the organisation by evaluating fixed factors of production and calculating opportunity costs.
The capital market is a medium where savings and investments are channelled between suppliers and those in need. Financial managers need to have a clear understanding of the functioning of capital markets and should stay updated about the latest trends in the capital market while giving financial advice to the board of directors. It is the responsibility of the finance managers to set long-term and short-term financial goals for the organisation by calculating
the future risks and implementing strategies to mitigate those risks.
The duties and responsibilities of the Finance Manager are increasing with each passing year and if you want to fit into the emerging role of finance manager, you have to upgrade your skills to keep up with the competition. It is also to be noted that the role of Generative AI in the finance sector is likely to expand in the upcoming years and will impact the role of finance managers.
As the world is getting more digitalised and technology-driven finance, managers should have technical skills and must be comfortable using the latest technologies. Having the adaptability to keep up with the latest technology will enhance the career prospects of a Finance Manager. Soon, Generative AI can assist in various tasks, including automating routine financial reporting and analysis tasks. As a result, Finance Managers will have to gain expertise in AI-powered tools in the upcoming years.
According to Marcus Philips, founder and managing director of mortgages.co.nz, “AI-Powered Ethical Investing, a product of generative AI, has completely reshaped the function of finance managers. This novel method entails employing AI algorithms to evaluate social, ethical, and environmental aspects in addition to financial data while making investment decisions.
Finance managers now have a special duty to include AI's ethical analysis in their plans, to match investments with moral and sustainable objectives. This entails striking a balance between financial returns and dedication to ethical investing, and it calls for both conventional financial research and a thorough grasp of AI-generated insights.”
In addition to financial management skills, the following critical skills are required for finance managers to excel in their profession:
To Sum Up:
According to the U.S. Bureau of Labor Statistics, 69,600 openings for financial managers are projected each year in this decade. Finance Manager is a lucrative career that offers job security and the key to thriving in this profession is upskilling. As the volume of financial data continues to increase, generative AI will become an increasingly important tool for making informed decisions and the Finance Manager has to stay equipped to handle AI tools to speed the process of decision-making. Some of the roles and responsibilities are likely to get reduced and additional responsibilities will be added in the upcoming years as generative AI keeps bringing revolutionary changes in the world of Finance.
Here is the list of other major locations where Edoxi offers Finance Certification Courses
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