How to Become a Financial Manager

Financial managers oversee organizations' fiscal activities to help them achieve short-term and long-term monetary goals. These accounting professionals may gather and analyze data, create financial reports, and develop investment plans for their employers.

Effective financial managers have strong analytical, leadership, and communication skills. They may find equal satisfaction in working with numbers, technology, and people. Perhaps most importantly, financial managers need to be honest and ethical people.

Becoming a financial manager typically requires you to possess a bachelor's degree and at least five years of related work experience. Use the guide below to learn more about the steps to pursue this exciting career.

Steps to a Financial Manager Career

Required Education for a Finance Manager

While an associate degree can prepare you for entry-level finance careers, you need a minimum of a bachelor's degree to become a financial manager.

A bachelor's degree can adequately prepare a financial manager for a mid-level position or leadership in a small company. However, if they aim for leadership roles in enterprise-level organizations, they will likely need a master's degree.

Finance and accounting are popular majors for aspiring financial managers, and some students advance from undergraduate programs into MBAs or master's degrees in accounting. An MBA in accounting can provide you with a mix of business leadership and finance courses, while a master's in finance focuses on the technical aspects of the job.

According to Payscale data from July 2024, people with bachelor's degrees in finance earned an annual average of $79,000, while those with MBAs in finance earned $134,000, on average. Earning a doctorate in the field can position you to perform research or teach, but it may be optional for a corporate leadership role.

Required Credentials for Financial Managers

No state mandates any particular credential for financial managers. However, many employers may prefer financial managers to hold recognized licensure or certification in accounting, auditing, or financial or management analysis.

Most of these credentials require a bachelor's degree or higher, and many demand thousands of hours of work experience after graduation. You may also have to pass a standardized exam, complete an ethics assessment, and pay organizational membership dues to hold one of these certifications.

Optional Certifications and Degrees

After earning your bachelor's degree, you can add a professional financial certification or another relevant degree to advance your career.

Many financial managers earn MBAs or master's degrees on their way to becoming a CPA, chartered financial analyst (CFA), or certified government financial manager (CGFM). These and other certifications can add significant value to your resume.

• Certified Public Accountant: Licensed by a state's board of accountancy, a CPA must hold at least 150 qualifying higher education credits and pass the CPA exam. Each state sets specific requirements for gaining and renewing this credential.
• Chartered Financial Accountant: An investment professional with a bachelor's degree and at least 4,000 hours of field experience can take the CFA Institute's three exams. CFAs must renew their membership in the CFA Institute annually.
• Certified Government Financial Manager: This certification suits professionals working in local, state, or federal government agencies. Managed by the Association of Government Accountants, the CGFM requires a bachelor's degree and at least two years of relevant experience.
• Certified Management Accountant: Members of the Institute of Management Accountants can register for the two-part CMA exam. Certification requires passing the exam, completing a bachelor's degree, and having at least two years of experience in financial management or a related field.
• Chartered Global Management Accountant: To become a CGMA, you must be a CPA or meet the professional development requirements, pass the appropriate AICPA exams, and have at least years of relevant management accounting experience.

Required Experience for Financial Management Jobs

In addition to a bachelor's degree and professional licensure, you need about five years of relevant experience to become a financial manager. You could work as an accountant, auditor, or financial analyst in preparation for this role.

While education cannot usually substitute for experience, you could earn a master's in finance or an MBA in accounting while working in an entry-level position. Advanced degrees can help you stand out from other candidates in the job search and perform high-quality work once you secure a position.

Many accounting-related degrees require an internship or practicum as part of their curriculum. This experience can provide you with vital networking opportunities.

Should I Become a Financial Manager?

Financial managers analyze complex data sets and recommend major financial decisions that can affect hundreds or thousands of people. You can earn an excellent income in this role, and the job opportunities are varied and plentiful.

However, you may also have to deal with frequently changing regulations, understaffed financial departments, or sophisticated AI systems.

Pros and Cons of Being a Financial Manager

If you choose to work as a financial manager, you may eventually pursue a career as a controller, personal financial manager, vice president of finance, or chief financial officer (CFO).

The Job Hunt

Although financial management jobs are growing, finding a perfect fit takes grit and ingenuity. You can attend job fairs on campus, ask your professors or professional mentors for recommendations, and network at major professional conferences.

Building or joining a community of like-minded finance professionals is often crucial to establishing and growing your career. Consider joining a LinkedIn group, attending local Chamber of Commerce events, and participating in an organization like the National Association of Insurance and Financial Advisors.

• Financial Management Association: FMA's job search function lets students, professors, and professionals search through available job opportunities and post resumes online. The service is free except for documents containing more than two pages, which cost $50 to post.
• FinanceJobs.net: Started in 2009, FinanceJobs.net is one of the oldest financial job boards in the nation with about 10,000 live job ads.
• FinancialJobBank: Part of the talent ecosystem Nexxt, FinancialJobBank lists over 100,000 available financial jobs. By signing up on the site, you can get weekly updates and access to thousands of new job opportunities.
• Association for Financial Professionals: The AFP certifies, trains, and provides resources for treasury and financial professionals. Its career hub offers tips and information on job search and a job board.

Upward Mobility

With the right mix of experience and education, a financial manager can pursue a career as a controller, financial planner, or chief investment officer.

• Controller: Financial controllers oversee the day-to-day operations of organizations' financial health. They generally need a master's degree in accounting or a related field and CPA licensure. Controllers report to CFOs. July 2024 Payscale data indicates that they earn an annual average salary of $93,540.
• Certified Financial Planner: Financial planners provide advice on investments for higher education costs, retirement expenses, philanthropy, and wealth building, among other personal goals. A financial planner needs a bachelor's degree and certification in financial planning. In July 2024, Payscale reported that they earned an annual average salary of $75,210.
• Chief Investment Officer: A CIO maximizes their company's investment returns while minimizing risk. Payscale data from July 2024 indicates that they earn an annual average salary of $185,870.

These jobs may require an MBA or a CPA license, along with experience in team leadership and corporate strategy.

Questions About How to Become a Financial Manager Career