Finance Manager role

It’s important to define what the main position in financial management entails.

Being a financial manager involves organising the financial responsibilities for a company or client.

The result of successful financial management is a company where the biggest possible profit is created at the smallest possible cost.

Depending on the career path and company, the exact role of a financial manager can vary.

In large companies, there is often a team dedicated to the finances and financial managers are often focused on setting up strategies.

In smaller companies, however, the financial manager is usually involved in the accounts with more insight into the company’s overall finance, but less assistance from a team.

The objectives in financial management

The specific objectives of a finance manager are also defined by the career path.

General goals include:

Gathering and evaluating financial information

In order to look for ways to improve the financial state of a company, all relevant data should be collected and considered. When going through past finances critically, it is easier to spot issues which might lead to unnecessary losses. This is an important process in saving the company money which could be used elsewhere.

Projecting future trends

Evaluating future trends is just as important as looking through past information. In order to set realistic goals, it is crucial to know how the country’s economic trends might be. Predicting future trends is also one of the best ways to make sure the finances are on the right track to see profits grow.

Considering the competition

Analysing what the competitor companies are doing can be extremely helpful. Looking to see what works for the competition can drive growth as you adopt winning strategies into the company. On the other hand, if you are able to see what doesn’t work for the competitors, then you can avoid using the techniques.

Mitigating risk

Risks in finance can be extremely profitable, since high-risk could mean high-reward. While it is enticing to choose the most potentially rewarding option, all valid choices need to be carefully considered. Unnecessarily risking assets could be detrimental to a company’s success.

What skills does a financial manager need?

While it’s advantageous to have natural abilities in financial management, all skills can be learned and developed over time. To become an excellent financial manager, a person should be skilled in:

Communication and presentation

In any field of management, being able to communicate clearly is crucial and in financial management, it is no different.

Communication takes place in every sphere of engagement in business. Relaying the correct message onto team members results in smooth operations and good understanding between staff.

Furthermore, shareholders expect to see what the company is doing and what revenue is looking like and the financial manager should be involved in what is communicated to them.

Numeracy and technical mathematics

Money is represented in numbers. Being able to work with finances naturally means it is necessary to possess a degree of mathematical insight.

Critical analysis

Often finding solutions to a problem requires carefully looking at what the problem is. In financial management, it is vital to analyse key information to find solutions to issues with the intention of making all financial systems in the company run as smoothly and profitably as possible.

Initiative

Money sitting waiting is money lost. It is important for the financial manager to take initiative to put any available assets in a position where they can be grown, whether passively through investment, or actively in the business where cash-flow is directly influenced.

Importance of financial management practice

One of the best ways to become better at something is to practice it with consistency.

In the workspace, practice can be effective in two ways:

Further education

Taking a short course in a field is hugely beneficial to improving understanding and developing the necessary skills to excel in any position.

Short courses are often dedicated to working professionals, which means the material is relevant and the hours are flexible such that the individual can work as well as study.

Work experience

Getting experience in a career is a certain way of finding out what is required in a position and it gives a taste what the industry or field is like.

Learning on the job can be demanding, but it is worthwhile as it provides foundational knowledge and professional understanding.

Get a financial management certificate from the University of Stellenbosch by studying an online short course on masterstart.com

Courses range from 6 to 12 weeks.

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