Learn how to become a financial manager (Education, job duties, salary and more)
Every organization needs someone with an analytical mind and keen eye for numbers to oversee their finances. Financial managers, therefore, are experienced professionals in charge of maintaining the financial health of an organization or department and managing the other finance employees. They often work closely with other managers or organization leaders to communicate pertinent financial information that affects other departments or the organization at large.
Financial managers usually have a strong educational foundation in accounting, business administration or a closely related field. They also need to accrue several years of experience before they are ready for a management role. For those that can satisfy these general expectations, they may be rewarded with a strong salary in a field with steady job growth projections in the coming decade.
A financial manager's job can have different responsibilities depending on the needs of their employer, which makes every position a little unique. They also need to understand the relevant laws and regulations (especially tax laws) that apply to their type of organization. A financial manager working in healthcare, for example, probably needs a firm grasp of insurance and billing to do their job.
There are some ubiquitous components that you can find in most financial management positions, however:
Financial analysis and planning: Analyze financial data and market trends, develop budgets and assess financial risks to make informed decisions that maximize profits.
Investment management: Oversee investment portfolios, balancing risk and return to achieve financial goals.
Financial reporting and compliance: Prepare accurate financial statements and reports and ensure that relevant laws and regulations are being followed.
Leadership: Manage financial team members and collaborate with other departments to achieve organizational objectives. Report on the organization's financial status to other leaders and relevant stakeholders.
Education requirements for becoming a financial manager
Financial managers can have many different job titles which means there's no cut and dried standards for what you need to be a financial manager. It all comes down to the needs of the employer and their personnel structure.
Management positions by nature are not entry-level roles. In order to build the necessary skills to oversee the financial operations of a business and manage other employees, most financial management positions typically want candidates to have several years of relevant experience.
Skills you should have
In general, you learn most of the financial knowledge you need to thrive in a financial management position throughout your degree program(s). Finance degrees are designed to give you a solid foundation in financial mathematics and business administration. You'll almost certainly continue to hone these technical skills on-the-job and throughout your career, but you should also cultivate some of these softer skills if you want to be successful in the long term:
Strong analytical and problem-solving skills
Ability to translate complex financial concepts into terms that other leaders and stakeholders can understand
Strong written and verbal communication
Interpersonal skills including conflict resolution
Leadership capabilities, ability to mentor those you manage
Detail-oriented and highly organized
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Pathways to becoming a financial manager
Before you can move up to a financial manager position, you'll almost certainly need some experience first. Expect to work in some entry-level finance roles for at least a few years, and later you may want to consider obtaining a professional certification to set you apart from your peers.
Entry-level positions
Dipping your toes in the world of finance is the first step on the path to becoming a financial manager. Gaining experience in one or several of these roles is crucial for developing the skills and knowledge you'll need in the next phase of your career. Most entry-level roles want candidates to have an associate or bachelor's degree.
Some entry-level finance positions to get you started might include:
Finance clerk: Maintain financial records and perform various administrative duties in an office setting.
Professional certifications are a must-have in many industries nowadays. Finance and financial management are no different. Certifications—which are obtained through a professional organization and typically require several years of experience in your field plus passing an exam—are a great way to show employers that you possess certain skills that set you apart from your peers. Whereas job titles on a resume alone can only convey so much, certifications act as standardized measure of someone's competencies.
There are a lot of financial certifications out there, and each of them validates a particular set of skills within the industry. The certifications that make the most sense for you, therefore, depend on your unique career trajectory:
Chartered Financial Analyst (CFA) through the CFA Institute–This certification is for finance professionals specializing in investment management.
Certified Financial Planner (CFP) through the CFP Board–A wide range of finance professionals involved in financial planning may benefit from a the CFP credential.
Certified Management Accountant (CMA) through the Institute of Management Accountants (IMA)–The CMA credentials evaluates 12 competencies of successful accounting managers.
Certified Government Financial Manager (CGFM) through the AGA–A certification specifically for financial managers working in local, state or federal government.
A certification could be the launch pad to the next level of your career so you can advance to jobs such as a Senior Financial Analyst, Financial Controller, Director of Finance or something similar.
Continuous learning
Since the financial landscape is ever-changing, staying current on the latest industry trends and regulations is essential to succeed in this field. Budding financial managers should therefore take it upon themselves to continue learning, expand their skillset and build their professional network if they want to keep their career moving forward.
Furthermore, some relevant professional certifications do require certification holders to complete continuing education—sometimes called continuing education units (CEUs) or continuing professional education (CPE)—in order to keep their certification active.
Continuous learning can be something as simple as keeping up with financial news and reading finance-focused publications. It can also be more structured and include things like attending seminars and webinars, conferences and other networking events or joining a professional organization which often connects members with relevant continuing education opportunities.
Financial management work settings
Financial managers work in just about every industry imaginable, which can influence their responsibilities and priorities. After all, no business, corporation, nonprofit, government agency or any other organization can run smoothly without someone keeping an eye on their financials. Some of the main work settings for financial managers include:
Businesses and corporations:
Manage the finances of companies or their departments across various industries, from manufacturing to technology.
Financial institutions:
Work in banks, investment firms or insurance companies to oversee investment portfolios and assess financial risks.
Play a vital role in managing public funds and ensuring fiscal responsibility within government entities.
Other opportunities:
Every organization requires financial leadership including schools and universities, hospitals and healthcare systems, utility companies and more.
According to the U.S. Bureau of Labor Statistics (BLS), the largest employers of financial managers are:
Finance and insurance companies
Professional, scientific and technical services
Management of companies and enterprises
Government
Manufacturing
Financial manager salary potential
Financial managers can have a wide range of salaries given that financial management jobs can be so varied. According to the 2023 Occupational Employment and Wage Statistics from the BLS, the median annual salary for financial managers is $161,700. This is more than triple the median annual salary across all occupations. Perhaps even more impressive is the fact that the 10th percentile of wage earners in this category of professionals earned $86,490, which is still higher than the median annual salary of all occupations.
In terms of job growth, projections for financial managers are strong: the BLS estimates that employment will grow 16.5% through 2033, which is much faster than the average across all occupations.
Financial Managers
National data
Median Salary: $161,700
Projected job growth: 16.5%
10th Percentile: $86,490
25th Percentile: $118,360
75th Percentile: $214,210
90th Percentile: N/A
Projected job growth: 16.5%
State data
State
Median Salary
Bottom 10%
Top 10%
Alabama
$138,040
$84,440
N/A
Alaska
$122,770
$82,880
$199,210
Arizona
$132,290
$73,060
N/A
Arkansas
$103,410
$55,850
$216,600
California
$174,920
$98,000
N/A
Connecticut
$169,730
$102,800
N/A
Delaware
$180,050
$122,110
N/A
District of Columbia
$181,210
$129,010
N/A
Florida
$143,100
$77,230
N/A
Georgia
$163,450
$86,040
N/A
Hawaii
$127,370
$76,210
$209,790
Idaho
$123,570
$76,570
$205,780
Illinois
$159,990
$95,670
N/A
Indiana
$132,320
$75,420
$218,350
Iowa
$130,600
$77,290
$217,600
Kansas
$138,980
$90,110
N/A
Kentucky
$125,490
$72,310
$217,780
Louisiana
$119,360
$72,840
$208,880
Maine
$134,410
$82,570
N/A
Maryland
$157,350
$82,880
N/A
Massachusetts
$181,170
$104,790
N/A
Michigan
$135,290
$79,650
$239,130
Minnesota
$158,040
$98,430
N/A
Mississippi
$105,970
$56,880
$202,320
Missouri
$133,560
$77,590
$234,660
Montana
$126,190
$78,740
$224,990
Nebraska
$134,410
$82,240
$225,140
Nevada
$124,560
$65,790
$235,410
New Hampshire
$141,520
$92,320
N/A
New Jersey
$188,750
$128,690
N/A
New Mexico
$122,180
$80,150
$204,510
New York
$215,740
$115,910
N/A
North Carolina
$160,340
$92,490
N/A
North Dakota
$130,070
$84,990
$234,680
Ohio
$133,450
$75,930
N/A
Oklahoma
$126,890
$71,670
$224,000
Oregon
$147,240
$94,900
N/A
Pennsylvania
$137,960
$81,000
N/A
Rhode Island
$160,490
$98,940
N/A
South Carolina
$127,610
$75,430
$226,870
South Dakota
$152,020
$110,050
$224,650
Tennessee
$133,010
$77,110
N/A
Texas
$160,350
$85,140
N/A
Utah
$137,760
$82,840
N/A
Vermont
$133,720
$80,850
$210,170
Virginia
$170,290
$100,150
N/A
Washington
$171,300
$110,600
N/A
West Virginia
$105,760
$65,520
$185,230
Wisconsin
$137,530
$80,740
N/A
Wyoming
$118,390
$61,040
$202,250
Source: U.S. Bureau of Labor Statistics (BLS) 2024 median salary; projected job growth through 2033. Actual salaries vary depending on location, level of education, years of experience, work environment, and other factors. Salaries may differ even more for those who are self-employed or work part time.
Your earning potential as a financial manager is influenced by many different factors including your location, experience, education level, the size and type of your employer and any specialty credentials you may have. Getting an advanced degree, such as a master's, or getting a certification could qualify you for better jobs with higher pay, for example.
It shouldn't be entirely surprising that New York is the state with the highest median annual wage for financial managers ($215,430) considering New York City's title as the financial capital of the world. Other top paying states are geographically close by and include New Jersey, Delaware and Massachusetts, followed by California on the West Coast.
How do financial managers compare to similar occupations?
Compared to similar occupations like accountants, financial analysts and the like, financial managers have a much higher median annual salary.
Career
Median Annual Salary
Financial Managers
$161,700
Accountants and Auditors
$81,680
Financial and Investment Analysts
$101,350
Budget Analysts
$87,930
Personal Financial Advisors
$102,140
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Taking the first step
If you think you have what it takes to become a financial manager, a solid education is your first step. Start exploring bachelor's degree programs in finance or related fields, or if you already have a bachelor's degree, a master's degree could be a sensible next move. Seek out internship opportunities to gain practical experience as well, and be sure to research relevant professional certifications to enhance your qualifications.
With dedication and a clear vision, you could embark on a fulfilling career as a financial manager where you guide organizations towards a brighter financial future.
