Written by Michael Feder
Reviewed by Kathryn Uhles, MIS, MSP, Dean, College of Business and IT
Written by Michael Feder
Reviewed by Kathryn Uhles, MIS, MSP, Dean, College of Business and IT
The act of financial management involves creating and executing business administration plans to manage resources and assets effectively — often to improve an organization. Financial managers typically handle this strategic planning and organization.
These financial professionals should have a handle on the bigger picture of a company’s financial landscape. Being a financial manager often involves budgeting an organization’s finances, for example, and forecasting potential investment decisions. Financial managers also oversee taxation issues and advise on how best to increase revenue.
The role of a finance manager has evolved from a back-office function to the heart of strategic decision-making in business administration. Changing market conditions, technological advancements and updated regulations have played a role in this transformation with the result that finance managers now hold a central position within an organization.
A financial manager’s responsibilities are as diverse as the markets and industries these professionals work in. Generally, duties include:
To successfully handle these tasks, financial managers need a unique blend of skills, experience and knowledge. Soft skills, such as communication, problem-solving and decision-making, are also helpful. Online finance classes can help aspiring financial managers gain these skills in a convenient format while staying current with the market.
With the combination of education, experience and professional certifications, you may be able to choose between various finance manager roles.
No matter the type of financial management, most employers require a minimum education of a bachelor’s degree in business, economics, finance or a related field. A degree in business with a certificate in finance equips you with knowledge and skills to understand key concepts. Likewise, a Bachelor of Science, a financial planning certificate or classes in small business financial management can provide a solid foundation of principles.
An online business degree can be advantageous as it provides the flexibility to continue working while earning your degree and offers you access to an expanded network of professionals.
Once you’ve gained an education and preliminary working experience, look for entry-level roles at a bank, an investment firm or a related organization. You’ll likely will receive a more technical understanding of financial planning, products and services. Volunteers who have experience in counseling clients on their finances may also find opportunities to network and build relationships within the industry.
According to the U.S. Bureau of Labor Statistics (BLS), in addition to earning a bachelor’s degree, financial managers often need to have at least five years of experience in a similar occupation, such as an accountant or financial analyst. These roles can be stepping stones to a career as a finance manager or they can be similar occupations if they are more appealing career options. Let’s briefly explore both.
Accountants and auditors prepare and examine financial records, and determine potential opportunities and risk while also providing solutions. One aspect of their job is to ensure records comply with laws and regulations and to identify potential risks for fraud. While a bachelor’s degree is typically required, important skills to have in this role include being good at math, being detail-oriented, having analytical and critical-thinking skills, and being a good communicator.
Financial analysts help businesses and individuals with their financial decisions, such as how to expend money to attain profit. They may also examine financial statements to understand the overall value of their client, recommend investments, prepare written reports and stay up-to-date on economic and business trends. Bachelor’s degrees typically are required for this role, but analytical, communication and decision-making skills are important, as is being detail oriented.
Compensation for financial managers can vary depending on the industry, location, level of experience and the organization’s size. As of May 2023, financial managers earned between $82,870 and $239,200, with a median wage of $156,100, according to BLS.
BLS projects employment among financial managers to grow by 16% from 2022 to 2032. This growth can be attributed to several factors, including the increasing complexity of financial regulations, the expansion of global markets and the growing need for financial expertise across industries.
So, if you have a passion for finance, enjoy analyzing numbers and have strong decision-making skills, a career as a financial manager may be right for you.
Salary ranges are not specific to students or graduates of University of Phoenix. Actual outcomes vary based on multiple factors, including prior work experience, geographic location and other factors specific to the individual. University of Phoenix does not guarantee employment, salary level or career advancement. BLS data is geographically based. Information for a specific state/city can be researched on the BLS website.
BLS Occupational Employment Projections, 2021-2031 is published by the U.S. Bureau of Labor Statistics. This data reflects BLS’ projections of national (not local) conditions. These data points are not specific to University of Phoenix students or graduates.
Although BLS classifies financial managers as a stand-alone role, there are a few occupations that it considers as “types” of financial managers. Roles vary by the responsibilities, topics, tax laws or regulations specific to the industry or organization where a financial manager works. This can include government or healthcare positions. Let’s explore each and their unique responsibilities.
Please note that University of Phoenix educates graduates to become financial managers. While the information below describes types of that role, the University cannot guarantee that the specific skills required for these roles are taught in its programs. This information is designed to help you understand the scope of the industry, so you are better informed about your career decisions.
Treasurers oversee a company’s assets, including cash, investments and other financial resources. Their role is to optimize the use of these assets, strategically allocating funds to meet an organization’s objectives and maximize profitability.
Other crucial responsibilities include:
Their expertise plays a pivotal role in driving the company toward success.
Credit managers work to establish credit policies and guidelines. They assess customers’ creditworthiness, set credit limits and determine appropriate payment terms.
They also develop strategies for managing a company’s debt. They analyze risk factors, monitor credit exposures and recommend solutions to potential problems.
Additionally, credit managers:
Since credit managers are responsible for payment compliance and credit risk assessment, they play a critical role in maintaining a company’s financial stability.
First and foremost, risk managers assess and analyze potential risks the company may face. They conduct thorough risk assessments, examining areas such as operations, finance, legal compliance, technology and more.
Once risks are identified, insurance managers step in to provide protection. They work closely with insurance brokers and underwriters to evaluate the company’s insurance needs. Then, they recommend and secure appropriate insurance policies that offer coverage for potential losses or liabilities.
Risk and insurance managers also play a pivotal role in managing insurance claims. They liaise between the company and insurance providers, ensuring claims are filed accurately and efficiently. They follow up on claims, facilitate communication and work toward a fair resolution.
In addition to these responsibilities they:
Although risk isn’t the ultimate decider of an organization’s financial success, it is key in maintaining security — something that risk managers ultimately strive for.
Cash managers work diligently to monitor, control and forecast a company’s cash flow. By understanding a company’s cash position, they can make informed decisions and strategies to ensure a healthy and sustainable cash flow.
They also work closely with financial institutions to establish and maintain banking services that support the company’s cash management objectives. They negotiate favorable terms for banking services, such as cash concentration, electronic fund transfers and short-term investment options.
Other duties include:
They ensure that a company can make timely and informed decisions about its financial resources.
If a career as a financial manager interests you, a Bachelor of Science in Finance and Technology at University of Phoenix can help you learn how to analyze financial information to address business needs. However, if you’re interested in one of the different types of financial managers, such as being a treasurer or cash manager, you will have to look up the specific education and requirements for those roles as the necessary focus areas may not be taught in the UOPX degree program.
In the business and financial planning program, you’ll learn top skills such as management, operations, financial planning and financial analysis. More specifically, you’ll learn how to examine areas of financial planning that can be used to improve decision-making and analyze financial information to improve operational performance.
Perhaps you’d prefer to pursue a career in accounting. If so, you may want to consider the University’s Bachelor of Science in Accounting. In this program, you’ll learn to develop specialized skills in managerial accounting, estate taxation, advanced topics in accounting research and more. If you’re interested in business in general, or other sector of business, explore more about the business degrees offered at University of Phoenix!
A graduate of Johns Hopkins University and its Writing Seminars program and winner of the Stephen A. Dixon Literary Prize, Michael Feder brings an eye for detail and a passion for research to every article he writes. His academic and professional background includes experience in marketing, content development, script writing and SEO. Today, he works as a multimedia specialist at University of Phoenix where he covers a variety of topics ranging from healthcare to IT.
Currently Dean of the College of Business and Information Technology, Kathryn Uhles has served University of Phoenix in a variety of roles since 2006. Prior to joining University of Phoenix, Kathryn taught fifth grade to underprivileged youth in Phoenix.
This article has been vetted by University of Phoenix's editorial advisory committee.
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