The role of a finance manager is to analyze financial data. They use their findings to create financial forecasts and reports. They also uncover insights to make the organization perform better. A successful finance manager will reduce costs and maximize the organization’s profits. They often work alongside key financial stakeholders. These include credit managers, risk managers, and loan officers. The financial guidance they provide can influence business plans for the company.
Advancements in financial management software have made financial tracking and forecasting available in real time. The software also helps with effective financial reporting. A good finance manager will use the latest technologies to complete financial analysis. This analysis allows them to provide valuable insights to the organization. Common tools include risk assessment software, bookkeeping software, and financial planning software2.
Finance managers need to stay compliant with government regulations. Preparing accurate tax and financial accounting records is a legal requirement for businesses. It's also necessary to improve financial management and performance. Some organizations, such as the US Department of Defense, have specific regulatory requirements. Financial managers need to understand and adhere to all industry rules and standards.
Many finance managers will help manage all aspects of an organization's financial performance. Some decide to specialize in managing investments or capital budgeting. You can also specialize in international finance or offer strategic financial advice.
Finance managers are required in both private and public organizations. These include commercial companies, non-profits, government departments, and other institutions such as schools. If you want a job with a varied career pathway, becoming a finance manager is a great choice.