Financial manager
A financial manager is responsible for providing financial advice and support to clients and colleagues to enable them to make sound business decisions. Specific work environments vary considerably and include both public and private sector organisations, such as multinational corporations, retailers, financial institutions, NHS trusts, charities, small manufacturing companies and universities.
Financial considerations are at the root of all major business decisions. Clear budgetary planning is essential for short and long-term future planning, and companies need to know the financial implications of any decision before proceeding. In addition, care must be taken to ensure that financial practices are in line with all statutory legislation and regulations.
Financial managers may also be known as financial analysts or business analysts.
The roles of financial managers vary significantly. The generic nature of the job title can be misleading and job descriptions should be scrutinised carefully as the level and scope of the responsibilities involved in any role coming under the banner of financial management can vary enormously. In larger companies for instance, the role is more concerned with strategic analysis; in smaller organisations, a financial manager may be responsible for the collection and preparation of accounts.
Typical activities include:
Although this area of work is open to all graduates, the following subjects may increase your chances and entitle you to exemptions from some professional examinations:
A relevant postgraduate course may be useful, but is not essential. In certain niche areas, specialised knowledge gained through a postgraduate programme may offer you a competitive advantage. Graduate schemes in finance and related areas almost always require further study for professional qualifications.
Candidates will need to show evidence of the following:
Some employers run vacation placements or short, work experience taster courses. Early application is advised. Professional accountancy bodies produce vacancy publications with details of traineeships and registration with professional bodies is open to individuals with A-levels (or equivalent) or above, such as HND/HNC. Many employers also offer industrial placement years. Your university careers service should be able to offer you support with finding these. It is also worth approaching organisations directly for work experience even if they have not advertised placements.
Entry into the profession is also possible with A-levels (or equivalent) or HND/HNC, generally by studying with an institution such as Association of Chartered Certified Accountants (ACCA) or The Institute of Financial Accountants (IFA) for an accounting technician qualification before proceeding to professional accountancy training. See the Financial Skills Partnership website as well as the ACCA and IFA sites for more information.
A variety of organisations offering finance graduate training schemes, as well as accountancy professional bodies, hold presentations on campus and have stands at careers fairs where you can talk to representatives and recent graduate trainees in order to get real insight into the nature of the work and tips on what helped them to succeed.
The recent economic downturn has affected all sectors, including finance, and City-based jobs have been hit, meaning there is now greater competition for fewer jobs. You might like to consider alternative entry into the finance sector rather than concentrating on graduate scheme opportunities. Accountancy firms, for example, are still recruiting actively, particularly in the smaller/medium size end of the market, offering useful starting points for 'growing' a career in the larger financial sector. Similarly, while finding a job in the City may be particularly difficult, there are openings throughout the UK.
For more information, see work experience and internships and search courses and research.
Most financial managers are qualified, or partly qualified, accountants. To become qualified, you need to pass or be exempt from a series of professional examinations and undergo a period of practical training. Professional accountancy training will mostly be on the job, and you will study for your examinations on a part-time basis.
You may follow a structured graduate training scheme, which will give exposure to a range of different functions. This will enable you to move into a financial management role at a later date. You may also be asked to complete a training log or portfolio to show evidence of your training and experience.
Structured graduate training schemes are offered in large companies and in the public sector, although some financial managers gain their initial training in accountancy firms.
For full details of syllabuses, practical experience requirements and exemptions from professional examinations, check the websites of the six major chartered accountancy bodies in the UK:
Which professional qualification to study towards is likely to be determined by your employer so it is important to find out in advance which qualifications are supported by the employer, as well as the level of financial support, tuition and study leave provided.
Most financial managers undertake professional accountancy training, usually in industry, commerce or the public sector, most commonly joining either the Association of Chartered Certified Accountants (ACCA) , Chartered Institute of Management Accountants (CIMA) or Chartered Institute of Public Finance & Accountancy (CIPFA) .
They may move into the role of financial manager in the latter stages of their training or they may take up the role afterwards.
The expertise offered by a financial manager is extremely transferable. Although training may have taken place in an engineering company for example, the knowledge and skills gained can be applied in any other environment across industry or commerce. Many financial managers use their knowledge of a company to move out of finance into a more general management role such as HR manager. Others decide to specialise in one industry, such as education.
Depending on experience, some move on to the role of finance director or managing director. Knowledge about the day-to-day running of a company is invaluable in these roles. However, moving from one role to another within an organisation, either related or unrelated to finance, may still require you to undertake further professional training.
Financial management offers good opportunities to work overseas. Professional qualifications from the major UK accountancy bodies are widely recognised by countries around the world.
Financial managers work in a variety of organisations, throughout all sectors of business, industry and commerce. Some may begin their training in firms of chartered or certified accountants, while others train in the public sector in a range of settings, such as:
Still more can be found in a range of industrial and commercial companies, including:
Financial managers may also be employed by small to medium-sized enterprises (SMEs), where they may be responsible for a wider range of activities.
Self-employment is also possible, as a consultant providing financial advice to a range of businesses.
Appointments are increasingly being handled by recruitment agencies, e.g. CompliantGlobal which frequently advertises in both the recruitment pages of professional journals and more generic recruitment sources such as newspapers.
Most of these paper sources have online equivalents with search facilities that allow you to easily filter jobs according to such factors as sector, location, salary, etc. When looking at vacancies, it is wise to look beyond the job title to the job description itself to gain a full understanding of the advertised position.
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