• Articles

How to Become a Financial Manager?

How to Become a Financial Manager?

Becoming a financial manager can be challenging due to complex financial matters. With high demand in the market, organizations are hiring extensively, resulting in attractive salaries. This blog will guide you through the process of becoming a finance manager in such circumstances and shed light on the future prospects of this career.

Table of Contents

Who is a Financial Manager?

Who is a Financial Manager

A financial manager is an experienced professional in charge of an organization’s financial activities, tasked with managing its finances and making strategic decisions to improve financial performance. Financial managers play an important role in sustaining cash flow and liquidity by ensuring compliance with financial regulations through proficient budgeting, accounting, and financial planning

Expand your managerial skills and propel your career. Join our Executive PG Certification in General Management by IIM Ranchi today!

Step-By-Step Instructions for Becoming a Financial Manager

Step By Step Instructions for Becoming a Financial Manager

Being a financial manager requires a combination of education, practical work experience, and the development of valuable abilities.

Here is a step-by-step guide to becoming a financial manager:

Step 1 – Earn a Bachelor’s Degree in Finance/Economics:

You need to acquire a bachelor’s degree in finance, economics, business administration, or related areas for a well-rounded understanding of financial principles. Completing this educational foundation is an essential first step toward acquiring the knowledge and abilities required to excel in the financial management profession. A solid foundation in these disciplines not only provides theoretical insight but also equips individuals with practical expertise, laying the groundwork for excelling in the complexities of financial management as a profession.

Step 2 – Acquire Field Experience in Entry Level Roles:

Once you obtain your bachelor’s degree in finance, initiate your professional journey by actively seeking internships in entry-level roles such as accountant or financial analyst. These opportunities will provide practical, hands-on experience in financial management, developing a comprehensive understanding of the complexities within the finance domain. Engaging in these opportunities doesn’t just give you practical knowledge; it also helps you develop the skills you need to handle the complex challenges in the finance world.

Step 3 – Get a Master’s Degree in Finance/Economics/Accounting:

You can also pursue and earn a master’s degree in finance, economics, or accounting to improve your professional readiness and eligibility for a variety of roles. While a bachelor’s degree is sufficient for a professional start, some organizations, particularly in finance, may prefer individuals with a master’s degree, which indicates additional knowledge and skill in essential industrial disciplines.

Want to nail your Scrum Master interview? Get the top Scrum Interview Questions right here!

Step 4 – Earn Professional Certifications like CFA, CMA, or FRM:

Earning professional certifications not only confirms your theoretical knowledge but also demonstrates a dedication to staying current with industry standards and best practices. Furthermore, these certifications build a sense of confidence in employers, showcasing an individual’s commitment to maintaining the highest professional standards in financial management.

Some of the reputable certifications for aspiring financial managers include the Chartered Financial Analyst (CFA), Certified Public Accountant (CPA), Chartered Financial Consultant (ChFC), Certified Management Accountant (CMA), and Financial Risk Manager (FRM). Obtaining these certifications not only enhances your credibility but also equips you with specialized skills and expertise, positioning you as a proficient and qualified financial manager in today’s competitive job market.

Step 5 – Engage in Professional Networking in FPA, AFP, or LinkedIn:

Networking is essential since it provides a gateway to discovering potential career opportunities and making important connections in your professional journey. Attending industry events, joining professional groups such as the Financial Planning Association (FPA), Institute of Management Accountants (IMA), or Association for Financial Professionals (AFP), and networking with financial experts on different platforms like LinkedIn,  Finspace, or eFinancialCareers not only broadens your awareness of open roles but also lays the groundwork for long-term professional partnerships.

What are the Skills Required to Become a Financial Manager?

To step into the role of a financial manager, one must possess not only technical expertise acquired through education and experience but also strong interpersonal skills, which are referred to as soft skills. The way you communicate and interact with others is essential to shaping your effectiveness as a financial manager.

Some of the important skills required to become a financial manager are as follows:

Technical Skills:

Technical Skills
  • Accounting Principles: Understanding accounting principles is important for a financial manager since it gives the core knowledge required to effectively understand financial figures. Accounting principles knowledge allows for effective financial analysis, which is useful in strategic decision-making. 
  • Financial Analysis and Modeling: Financial managers must excel at financial analysis and financial modeling because these abilities enable them to dissect complex data, assess the financial condition of the organization, and make informed decisions. Proficiency in these areas enables them to predict future scenarios, identify risks, and strategically maximize financial performance.
  • Budgeting and Forecasting: With the help of budgeting and forecasting skills, a finance manager provides a strategic roadmap for allocating resources in accordance with company goals while optimizing efficiency. These abilities allow for proactive approaches to problems and opportunities, guaranteeing financial stability in a volatile business environment.

Soft Skills:

Soft Skills
  • Communication Skills: Good communication skill allows you to communicate complicated financial information to various audiences and explain financial reports and analyses to management and board members in a clear manner.
  • Problem-Solving Skills: Financial managers must be able to solve problems because their jobs require them to deal with complex financial issues. These abilities allow them to recognize complex financial difficulties, identify root causes, and design efficient solutions to maximize resource allocation and financial performance.
  • Analytical Skills: Analytical skills involve the ability to discover and evaluate trends and patterns in financial data, to assess risks and opportunities, and to design and implement strategic financial initiatives.

Role of a Financial Manager

A financial manager’s job involves handling money, making financial plans, and ensuring a company’s finances are in good shape. They’re like financial superheroes! 

Below are some of the common responsibilities of a financial manager:

  • Monitoring and managing the organization’s cash flow for liquidity
  • Creating and managing budgets in order to properly distribute financial resources
  • Making strategic decisions about how to invest organizational funds
  • Providing senior management with financial assistance and advice
  • Managing and supervising accounting and financial systems
  • Investigating factors influencing business performance and developing strategic and long-term business goals as a result

Future Scope and Salary of a Financial Manager

The future scope looks bright for financial managers. According to the Bureau of Labor Statistics, employment for financial managers is expected to expand by 17% from 2020 to 2030, above the average growth rate for all occupations. This expansion is projected as a result of the increasing complexity of financial markets and the need for enterprises to improve their financial management processes.

Salaries for financial managers can vary greatly depending on characteristics such as experience, educational background, industry, and geographic region. Maintaining current with industry trends and consistently improving abilities can have a favorable impact on earning potential, making ongoing professional development essential in such an ever-evolving business.

Salary of a Financial Manager in India:

ExperienceSalary in IndiaSalary in Abroad
Entry level (less than 3 years)₹5 to ₹8 lakhs₹55 to ₹70 lakhs
Intermediate (3 to 9 years)₹8 to ₹12 lakhs₹65 to ₹90 lakhs
Experienced (10+ years)₹12 to ₹30 lakhs₹90 to ₹110 lakhs

Roadmap to Financial Manager in 100 Words

Start your journey in financial management by establishing a strong educational foundation in accounting, finance, economics, or business administration. Afterward, consider pursuing valuable certifications like Chartered Financial Analyst (CFA) or Certified Management Accountant (CMA) to enhance your skills and credibility. Gain practical experience through internships or entry-level positions in finance or accounting departments. Then, connect with industry experts through professional groups and events. After that, continue to grow your expertise by staying informed about industry trends. Finally, with commitment and persistence, you can steadily progress towards achieving success as a financial manager.


The job of a financial manager requires a strategic combination of education and experience. The field offers stability, good pay, and opportunities for leadership. Along with these benefits, the work has limitations such as high stress, long hours, and a constant need for adaptation to this ever-evolving field. For those with a genuine interest in finance, pursuing a career as a financial manager can be highly rewarding.

If you have any questions to ask, feel free to drop them on our Community Page!

Course Schedule

Name Date Details
Executive Post-Graduate Certification in General Management 01 Jun 2024(Sat-Sun) Weekend Batch
View Details
Executive Post-Graduate Certification in General Management 08 Jun 2024(Sat-Sun) Weekend Batch
View Details
Executive Post-Graduate Certification in General Management 15 Jun 2024(Sat-Sun) Weekend Batch
View Details

About the Author

Senior Copy Editor

Aparna is a Senior Copy Editor, who combines a passion for precision with creative flair. With a background in law and market research, she has extensive experience in crafting compelling content, she excels in refining narratives to captivate audiences across diverse platforms.