To run any business or project required money or finance. Managing money or finance is important for sustainability of an organization. A career in finance is attractive and have great demand over the time. The salary package will depend on education, school in which you took your education, experience, role in the organization, size of the organization etc.
What is Finance Management?
Financial management is concerned with acquiring, financing and managing assets to accomplish the overall goal of a business enterprise. It is also a science of money management to ensure a positive cash flow.
According to Raymond Chambers “Financial Management comprises the forecasting, planning, organizing, directing, coordinating and controlling of all activities relating to acquisition and application of the financial resources of an undertaking in keeping with its financial objective”.
Another definition given by Phillippatus is “Financial Management is concerned with the managerial decisions that result in the acquisition and financing of short-term and long-term credits for the firm”.
Roles and Responsibilities of a Finance Management Professional
The roles and responsibilities of finance management professional varies from organizations to organizations. Big organizations are having number of finance management professionals in the office to perform different functionalities or specialization. Each one has to concentrate only on their own area. But small organizations may have only one person who has to look into all of finance management, he / she may even do accounting also. The scope can be extended as career in accounting also.
The roles and responsibility of a fiancé management professional can be divided into five, they are: Investment decision (Allocation of funds to specific assets), Financing and capital structure decision (raising funds for the requirement of firm), Financial analysis and planning (determine the proper amount of funds to employ in the firm), Management of Financial Resources (working capital management), and Risk management (protecting the assets).
Educational Qualification Required
Various educational qualification are accepted in the field of finance management profession. Added advantage is given to those who have educational background of the job’s particular requirement.
Many qualifications like Chartered Accountant, ICWA, MBA Finance, MCom, etc. are helpful in becoming a finance management professional. Basic qualification required is a degree in commerce. Certificate or diploma in different finance subject will give an added advantage.
Always take care that the school or college you study will give you a value to the education. Studying in a good business school like IIMs can give you a good start in the field of finance management.
Skills and Knowledge Required
Each role in finance required specific knowledge and skills. A thorough knowledge in all the fields of finance and updating the knowledge regularly is also the key. One who is not updating the knowledge will not be a successful person in this field. Preparing financial strategies and manage money according to the plan is the key. They should keep their love for numbers and have good mathematical knowledge. Knowledge in computer and new software technologies are a must for growing in this field. A broad knowledge of business as a whole is also a must for a successful finance management professional.
The personal skills required to become a successful finance management professional are interpersonal and communication, reporting, presentation, analytical, reasoning, problem solving, planning, creative thinking, decision-making, etc.
How to become a Finance Management Professional
One of the method to become a finance management professional is by obtaining an MBA degree in finance. Most of the business schools offers MBA in Finance which is a two-year full-time course. Admission to good business schools are done with various steps includes Written Test (like CAT, MAT, GMAT), Group Discussions, Personal Interview etc. Executive MBA is offered by some institutes for experienced persons. The minimum qualifications required for joining MBA course is Degree in any subject.
Some other courses which can lead to finance management profession are Chartered Accountancy (CA), Chartered Financial Analyst (CFA), Cost and Management Accountancy, Master of Commerce, Certified Investment Banker, Actuary, Certified Risk and Insurance Management, etc. The minimum qualification for joining these courses will be different depends upon the courses.
It is good if one has to planned initially in their studies, at least at the time of 10th pass, to decide on which course they have to choose if they want to become a finance management professional.
Where do I get the Job?
All companies including big firms, small firms, NGOs, etc. required finance management professionals. The role and scope of operation will be different depends upon the organization. There are many entry-level opportunities available in organizations like finance executive, accountant, financial analysis, consultant, etc.
Job prospects will be more in firms like banks, insurance companies, government agencies, cooperative societies, micro finance, consultancies, finance organizations, stock broking companies, NGOs, etc. Academics and research are also an option for those who are interested in the field.
Finance Management Jobs
Some of the jobs a finance management professional can even become Chief Executive Officer (CEO) of a company.
Other common jobs available for finance management professional are
Chief Finance Officer
Mutual Fund Broker
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