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Finance Manager Job Description Explained – Roles and Responsibilities

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15th Mar, 2023
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Finance Manager Job Description Explained – Roles and Responsibilities

There are several job titles within finance, each with its own set of responsibilities, skills, and abilities. In essence, all finance jobs involve analyzing data, making sense of numbers, and reporting on financial performance. However, the precise scope of responsibilities varies depending on the individual role.

The role of a finance manager is one such specific role that is highly sought after in today’s day and age. A finance manager is in charge of overseeing a company’s financial operations from start to finish. To be successful in this role and achieve desired results, you must have excellent time management skills and the ability to delegate effectively. 

Read below for more details about what it takes to become a finance manager and what kind of responsibilities you can expect as a finance manager at your company.

What is a Finance Manager’s day-to-day responsibility?

According to the finance manager job description, you will be in charge of managing the entire finance function. Your day-to-day responsibilities will include managing the company’s cash flow, reviewing the company’s spending, and forecasting future financial performance. 

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You will be responsible for developing processes and procedures for managing and protecting the company’s financial resources and overseeing the company’s investments and related financing activities.

You will also manage the company’s relationship with its bankers, auditors, investors, and financial advisors. Additionally, a finance manager is also expected to hone proficiency in creating reports based on the data gathered and be able to interpret financial information to help senior management make decisions.

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Key Responsibilities of a Finance Manager

Some of the key responsibilities that come with financial manager roles include: 

– Manage the company’s cash flow: This includes forecasting cash flows, managing accounts payable and receivables, and ensuring liquidity and sufficient credit lines. 

– Review the company’s spending: You will need to review the company’s budgets and forecasts and all expenses to ensure no unnecessary spending takes place. 

– Forecast future financial performance: You will need to analyze past performance to help forecast future performance and make decisions based on those forecasts. 

– Manage the company’s relationship with its banker, auditors, investors, and financial advisors: You will need to keep all parties informed of the company’s financial progress and respond to any questions or concerns they may have. 

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– Create reports based on financial information: Based on your findings about the financial state of your organization, you will have to create elaborate and descriptive reports to communicate your findings to other stakeholders and management people. 

 – Interpret financial information: You will need to be able to interpret financial information and provide advice and recommendations based on that information.

Core Tasks of a Finance Manager

Here are some of the core tasks you’ll be performing on a day-to-day basis when it following the finance manager job description.

– Managing budgets – You will need to closely monitor and manage the company’s budgets to make sure they are realistic and achievable. 

– Managing accounts payable and receivables – Finance managers need to closely monitor accounts payable to ensure timely payment and monitor accounts receivable to collect money owed to the company as soon as possible. 

– Ensuring liquidity and sufficient credit lines – You will have to forecast cash flows and use that information to ensure there is enough cash on hand and that the company maintains a healthy credit line at all times.

 – Creating reports based on financial information – Analyze and create reports showing senior management the company’s financial health and business strategies.

– Understanding and communicating financial information – A finance manager should be able to interpret financial information and provide advice and recommendations based on that information. As a manager, you will also be required to communicate this financial information to the general population of your organization in an easy-to-understand manner. 

Key Skills for Becoming a Finance Manager

Here are some of the essential skills you’ll need to not only become a finance manager but also to succeed in the career: 

– Excellent time management skills – A finance manager must be self-disciplined to prioritize tasks and keep themselves on a strict schedule that allows them to complete all tasks within a set timeframe. 

– Strong attention to detail – Finance managers must be responsible for reviewing and analyzing financial data in order to pay careful attention to details and notice any unusual activity. 

– Extensive knowledge of accounting principles – Since your day-to-day work will be around managing finances and accounts, you will be required to have a solid foundation of accounting principles and underlying concepts. That way, you will not struggle daily to catch hold of the basics. 

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– Fluent financial reporting skills- Knowledge of working on financial reports is one of the key skills a financial professional must possess. Finance reports demand utmost accuracy and relevance, so a finance aspirant must hone this skill. 

– Deep knowledge of financial planning and investment strategies – As a financial manager, your grasp of fundamental and advanced financial planning concepts must be strong enough to support the entire organization’s finance structure. The role of a manager demands you to recommend strategies to fuel financial growth, and it is only possible with in-depth knowledge of finances and investment. 

Job opportunities for finance managers

With financial manager responsibilities, you can expect to earn a high salary and have plenty of job opportunities.

According to the BLS, the finance manager field is expected to grow by 4% between 2018 and 2028. You can expect to earn a median salary of $127,000 (or $62.50 per hour) and an average bonus of $33,000. The exact job prospects in the field of finance management will always vary, depending on the domain of your work and the location you operate from, among other things. 

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Conclusion

A finance manager’s role is crucial to any organization’s growth and consistency. As a finance manager, you will manage the entire finance function, demanding the right balance between managing the company’s relationship with its stakeholders and working on its investment strategies for financial growth. As the market continues to grow and seek talented candidates, you must inherit the right set of skills and experience to make it through the hiring process. 

Financial manager responsibilities and skills are easy to acquire if you know the right resources and have the correct mentors by your side. Our Job-ready Program in Financial Modelling & Analysis in association with PwC India, aims to bring real-world skills and knowledge to management aspirants from industry and academia experts. This 4 month course is perfect for sales and marketing executives, managers and entrepreneurs, IT professionals, and more. Get yourself registered soon, and experience the upGrad advantage! 

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Frequently Asked Questions (FAQs)

11. Is Finance Management good for freshers?

Generally, finance management is not a field for absolute freshers but for professionals who have spent some years working in the industry and now want to move up the ladder.

22. Does Finance Management require any prerequisite?

Finance management as a field of work doesn’t explicitly have any prerequisites. However, it would help you to have relevant work experience, or at least a relevant degree or diploma in this field, to have better chances of getting high-paying jobs.

33. Is Finance Management a well-paying career?

Yes, finance management is one of the higher-paying fields of work today. With the rising number of startups, more companies are looking for talented finance professionals leading to more lucrative opportunities for finance managers.

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