What Does a Financial Manager Do?

Financial managers direct their employers' financial activities. Their key duties include analyzing financial statements, creating revenue and budget projections, and monitoring the organization's finances. Depending on organizational structure, they may report to directors, executives, or C-suite personnel.

Many financial managers have backgrounds in accounting, banking, business management, economics, or finance. In most organizations, financial managers hold mid to upper-level roles requiring multiple years of experience. They can work in the private or public sectors.

Learn what a financial manager is, including their job duties, necessary skills, and typical earnings in this guide.

Financial Manager Duties

Financial managers monitor, protect, and improve an organization’s finances. Their specific duties vary according to their employer's size, industry, and sector. In general, financial managers track and report key financial indicators and factors impacting their employer's monetary health.

Their key duties include:

Financial Manager Areas of Expertise

Financial managers can work as generalists or pursue specialized roles. While many hold full-time positions with employers or operate as consultants, some also manage the finances of individual clients.

Government

Financial managers perform many of the same duties in public organizations as they do in the private sector. However, their work faces additional controls and oversight since they work with taxpayer funds. In government roles, they are also subject to ethics laws for public servants.

Government financial managers conduct internal auditing and budgetary accounting that aligns with public-sector best practices. Financial managers also require advanced knowledge of governmental accounting standards.

Common Job Titles

• Comptroller
• Finance Director

Risk Management

Businesses face many risks. Some — such as the risks inherent to investing, macroeconomics, and market conditions — are financial in nature. Others originate outside of finance but hold the potential to adversely impact a company's financial standing. Examples of these risks include natural disasters, changes in public sentiment, and unethical employee behavior.

Risk management professionals specialize in identifying risks and taking preemptive action to address them. They create contingency plans and response strategies for every risk scenario that could potentially endanger a business. Credentials such as a certification in risk management assurance can lead into this career path.

Common Job Titles

• Risk Analyst
• (Certified) Risk Manager

Investing

Businesses often direct their excess liquidity into financial markets to earn returns on those funds. Some organizations favor low-risk investments, such as government debt securities and money market funds. Others pursue more aggressive returns by diversifying into assets like mutual funds, exchange-traded funds, and stocks.

Finance professionals with advanced investment expertise manage these activities. To enter this path, you can combine investment management experience with one or more professional certifications, such as certified fund specialist or chartered investment counselor credentials.

Common Job Titles

• Asset Manager
• Equity Analyst
• Investment Accountant
• Investment Advisor
• Investment Manager

Personal Finance

Individuals at all income levels may seek professional help planning their personal finances, especially if they have limited knowledge of financial markets and investing strategy. Expert advisors assist in guiding their investment and money management decisions, and in achieving specific wealth-building objectives.

Depending on the services you plan to offer, you may need to register with the Securities and Exchange Commission, earn professional certification(s), or obtain a state license. Standardized credentials such as the certified financial planner designation may help you establish yourself or advance in this career path.

Common Job Titles

• (Certified) Financial Planner
• Investment Advisor
• (Personal) Financial Advisor
• Wealth Manager

How to Become a Financial Manager

You can follow multiple educational paths to become a financial manager. A bachelor's degree in accounting, business administration, economics, finance, or financial accounting meets the educational requirement for this role.

From there, you could enter the workforce to gain experience or pursue a master's degree in accounting, business administration, economics, finance, or another related field. Many professionals pursue both paths by building professional experience before returning to school or earning an online degree while continuing to work.

Financial managers often have multiple years of experience as budget analysts, financial analysts, forensic accountants, certified public accountants, or similar professional roles.

Beyond education and relevant experience, financial managers can boost their credentials by earning a relevant certification. Some examples include:

• Certified Government Financial Manager
• Certified Investment Management Analyst
• Certified Management Accountant
• Certified Treasury Professional

Financial Manager Salary and Career Outlook

According to the U.S. Bureau of Labor Statistics (BLS), financial managers earned a median salary of $156,100 per year as of May 2023. In top-paying states, such as New York and New Jersey, their average annual salary topped $200,000.

Financial managers are in demand and have a strong career outlook. The BLS projects 17% job growth for financial managers from 2023-33, much faster than the 4% average growth for all occupations. During that time, the BLS expects to see more than 75,000 annual job openings.

Career Spotlight: Scott Stanley, CFP

Why did you go into finance? What initially interested you about the field?

I decided to pursue a career in finance because a high school teacher of mine sparked an interest in the stock market. This teacher noticed a spark in my eyes every time the subject was mentioned. He took me under his wing and fostered my new obsession for finance and the stock market. Money, order, disorder, fortunes made, fortunes lost — I knew pretty quickly that this was a fascinating industry that I wanted to be a part of.

What education did you need to pursue this career? How did it prepare you for your current role?

To start, I pursued an undergraduate degree: I got my BS in corporate finance. This was before I knew I wanted to work in the financial planning world. It set a great foundation for the ultimate path I took, but it would have been a good credential for any general financial career. It helped me understand the basic economic functions that drive markets and make the world go round.

Once I learned that financial planning was the specific direction I would take, I decided to get licensed and, ultimately, become a certified financial planner. This was the most valuable educational experience I could have asked for. It helped me achieve a much deeper understanding of financial planning. It gave me the skills I needed to become the best financial planner possible.

What was the job search like after graduating with your degree?

It wasn't necessarily fun — but I think I have a pretty typical story. I interviewed for a number of internships. One failure after another. Finally, I landed the internship of a lifetime: an assistant analyst at an Ameriprise financial planning office. Before I landed the internship, I spent weeks traveling from city to city, interviewing with different firms.

I wanted to get a feel for all of the options out there. Some large, some small. It was the only way to get a feel for what type of firm might be the best fit for me. Of course, you take what you can get, and even if it's not perfect, it's a good start.

What was the career path that led you to this position? What do you think helped you most on your journey to becoming a financial manager?

I spent three years at a local wealth management firm before I started transitioning into a financial advisor role. I worked with the owner of the firm to hammer out details of the transition. It's not easy becoming a financial advisor. It's one of those gigs where you have to pay your dues. Serious dues. I took a major pay cut to make the leap. It was well worth the risk, but it took some time to build up a book of business and make a livable wage.

Eventually, I got to the point where I knew I needed to go out on my own. The culture at the firm I was working at wasn't a great fit. I learned what I liked about the business, what I didn't like about the business, and took those lessons to start a new firm. A story for another day.

The most helpful aspect of my journey was the risk-taking. It's hard to make serious progress in your career if you're not willing to take risks. Risk-taking, within reason, is what sets us apart from one another. Without taking the risk of a salary cut to become a financial advisor, I wouldn't be here today. I can safely say that taking the risk of starting my own firm was the best decision I've ever made.

What does a typical day at work look like for you?

A typical day starts with reviewing my calendar and to-do's. The calendar and list of to-do's set the tone for the day and determine the direction of that day. Generally, much of the day is spent preparing for client meetings and then attending those meetings. Another portion of the day will likely be spent creating and managing financial plans.

This takes a lot of analytical energy, so of course, taking lots of breaks and exercising is a must. The gaps in the day are generally packed with tasks that were created as a result of meetings. For example, placing investment trades, doing research on certain estate planning strategies, etc.

What are some of the most rewarding aspects of working as a financial manager? Some of the most challenging aspects?

The most rewarding part of being a financial planner is positively influencing the lives of your clients. When you have the power to positively change the trajectory of their quality of life and help them meet their goals, your sense of satisfaction and achievement is astronomical.

On the contrary, the hardest part is when you know that, no matter what you suggest, you may not be able to help someone out of a difficult situation. Living with the feeling that you can't help someone isn't easy. With that said, if you can help just one person, the pain of not being able to help others is totally worth it.

What do you think is the most important skill financial managers need to succeed?

Aside from the obvious technical skills, you need to make financial recommendations — the most important skill to have as a financial advisor is empathy. You need to be able to connect with your clients on a level beyond analytical. If you can emotionally connect and create a bond, the satisfaction for you and the client grows exponentially.

Not to mention, you need to emotionally connect so that you can understand all of the aspects of your client's life. Your job as a financial advisor is much more than just telling someone to make a certain trade or contribute more to their retirement account. You end up doing a lot of coaching and therapizing. The dynamic demands of this job are what make it so much fun and rewarding.

What advice would you give to students considering your career?

Interview a local financial advisor. Many advisors, including myself, are always happy to sit down with a college student for lunch and talk about the pros and cons of the career. A little mentoring can go a long way.

If you like people, solving problems, financial concepts, and working hard, this is one of the most rewarding and lucrative businesses you could find yourself in.

Scott Stanley

Scott Stanley is the founder of Pharos Wealth Management, a firm headquartered in the San Francisco Bay Area. Stanley works with individuals, families, and small businesses to plan, manage, and pursue their financial goals. Before Pharos Wealth Management, he worked as a tenured financial manager, portfolio manager, and wealth advisor at a boutique wealth management firm in Marin County.

Stanley has a rich background in investment research and analysis, financial planning and modeling, portfolio management, and team management. He is also a certified financial planner, holds a bachelor of science in corporate finance, possesses Series 7 and 66 licenses, and maintains licensure as a resident insurance producer (life, accident, and health).

Questions About the Financial Manager Job Description