Financial Managers

Financial managers are responsible for the financial health of an organization. They create financial reports, direct investment activities, and develop plans for the long-term financial goals of their organization.

Duties

Financial managers typically do the following:

• Prepare financial statements, business activity reports, and forecasts
• Monitor financial details to ensure that legal requirements are met
• Supervise employees who do financial reporting and budgeting
• Review financial reports and seek ways to reduce costs
• Analyze market trends to maximize profits and find expansion opportunities
• Help management make financial decisions

Financial managers spend much of their time analyzing data and advising senior managers on ways to maximize profits. They often work on teams, acting as advisors to top executives.

Financial managers must have knowledge of the topics, tax laws, and regulations that are specific to their organization or industry. For example, government financial managers must be experts on appropriations and budgeting processes; healthcare financial managers must understand billing, reimbursement, and other business matters related to healthcare.

The following are examples of types of financial managers:

Controllers direct the preparation of financial reports that summarize and forecast an organization’s financial position. These reports may include income statements, balance sheets, and analyses of future earnings or expenses. Controllers also are in charge of preparing reports required by governmental agencies that regulate businesses. Often, controllers oversee the accounting, audit, and budget departments of their organization.

Treasurers and finance officers direct an organization’s budgets to meet its financial goals. They oversee investments and other plans to raise capital, such as issuing stocks or bonds, to support their organization’s growth. They also develop financial plans for mergers (two companies joining together) and acquisitions (one company buying another).

Credit managers oversee an organization’s credit business. They set credit-rating standards, determine credit limits, and monitor the collections of past-due accounts.

Cash managers monitor and control the flow of money into and out of an organization to meet business and investment needs. For example, they must project whether the organization will have a shortage or surplus of cash.

Risk managers use strategies to limit or offset an organization’s chance of financial loss or exposure to financial uncertainty. Among the risks they try to limit are those arising from currency or commodity price changes.

Insurance managers decide how to limit an organization’s losses by protecting against risks, such as for disability payments to an employee who gets hurt on the job or for costs imposed by a lawsuit against the organization.

Financial managers held about 868,600 jobs in 2024. The largest employers of financial managers were as follows:

Financial managers work closely with top executives and with departments that develop data needed for analysis.

Work Schedules

Most financial managers work full time, and some work more than 40 hours per week.

Financial managers typically need a bachelor’s degree and 5 years or more of experience in another business or financial occupation, such as accountant, securities sales agent, or financial analyst.

The median annual wage for financial managers was $161,700 in May 2024.

Employment of financial managers is projected to grow 15 percent from 2024 to 2034, much faster than the average for all occupations.

About 74,600 openings for financial managers are projected each year, on average, over the decade. Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.