Financial Managers – Are You Interested in a Financial Management Job?

Financial managers are present in about every industry and firm whether public or private, and they are responsible for preparing financial reports and managing the investment activities of the corporation. They may also go by the titles controller, credit manager, insurance manager, or finance officer.

Controllers are responsible for preparing financial reports and statements and earnings, and finance officers are responsible for managing the budget of the corporation. Credit managers are responsible for managing a corporation’s credit and maintaining or improving a credit rating and determining debt ceilings.

Cash managers are responsible for controlling and monitoring the amount of cash that goes in and out of the business every month, and insurance managers are responsible for minimizing the risks that an individual or corporation will take during its business operations.

The most common areas of employment of financial managers are usually institutions such as banks and investment firms, and the role of finance management can be highly specialized in the case of larger institutions or cover most of a firm’s operations in much smaller businesses.

Most financial managers will work in comfortable office settings working on new computers, and they may work long hours, which can include 60 hours a week. They may also have to travel in order to visit customers or clients. Managers will usually require a bachelor’s degree in order to compete in competitive financial firms, although some first start out as loan officers and work their way up to a higher position.

In 2006, financial managers held over 500,000 jobs in America, with about 30% employed in the financial sector and the rest working for commercial businesses or Federal or state governments. Job prospects overall for financial managers will keep pace with the average rate of population growth in the country.

In 2006, financial managers in the middle fiftieth percentile of earnings made between $67,000 and $125,000. Larger firms will offer higher salaries and generous benefit packages, which can include stock bonuses and additional forms of compensation, while smaller firms will usually provide less in the way of benefits.

How the Financial Management Process Is Transforming

The process of financial management is one of the key processes in an organization. This process plays a vital role in supporting the corporate decisions, while meeting the regulatory and legal requirements. To run an organization smoothly, it is essential to manage its finances in an accurate and appropriate manner. This is why entrepreneurs hire an expert help or partner with a financial service provider to handle end to end accounting tasks.

With a comprehensive network of professionals, finance and accounting service providers bring together the right set of people at the right time to help entrepreneurs lead the financial market. By focusing on improving the performance and increasing the value of a business, these service vendors offer a range of financial services to bring a transformation in this sector.

Well-organized Financial Operations

By structuring and standardizing the accounting functions, an entrepreneur gets empowered to identify the improvement areas and recommend relevant suggestions to overcome industry challenges.

In order to explore the full potential of resources, financial firms integrate advanced technologies and applications that further automate the accounting processes and deliver timely reports and accurate results. This allows the in-house staff to shift their focus on other core areas. Service vendors offer robust platforms and resources to manage transactions and operations of the financial sector.

Service offerings:

• Market research
• Financial planning and management
• Accounting BPO Services
• Banking Services
• Financial research and marketing
• SLA management

With the help of a service provider, entrepreneurs can minimize the risk factor and maximize return on investment, on various financial decisions.

Other allied financial services include:

• General Ledger Accounting
• Accounts Receivable Management
• Accounts Payable Management
• Bank Reconciliation
• Collection Outsourcing

Effective Decision Making

The service vendors deliver an adequate financial plan & a performance management agenda so as to help an entrepreneur make better decisions. Entrepreneurs refer to financial forecasts before making any acquisition or adding a new segment to their business.

The process includes the subsequent offerings:

• Financial Information Management
• Cash & Working Capital Management
• Expense Management
• Financial Reporting & Analysis
• Budgeting & Forecasting

Financial Planning and Transformation

Making a financial strategy helps an entrepreneur redefine their business goals and ways to accomplish them. It helps a financial officer to evidently articulate the fiscal vision of an organization, analyze the process efficiency and develop a future ready business model.

To bring transformation in the financial processes, it is essential to understand the business needs and then plan ahead for success. Financial transformation involves a review of the entire process and explores the growth and challenging areas that an entrepreneur need to focus upon. Service providers suggest relevant changes to be implemented in a business for process improvement.
Due to new and improve methods and business solutions the process of financial management is transforming drastically.

Financial management services have become a necessity for entrepreneurs who want to better their accounting stature and overall business proficiency.

Easing Your Money Management Using Financial Management Software

Good business financial management principles are some of the most important and foundational things that you can learn if you are planning to take the plunge into owning and operating your own business, either now or at some point in the future. Along with a sound understanding of these principles and acquiring solid money management skills, you should also make full use of the business related, financial management software that is available these days.

When business owners, managers and accounting personnel make financial decisions for a business, it is important that they have the most complete, organized and accurate business financial management reports that are available. It is also important that these reports are as up-to-the minute and current as possible, especially in today’s volatile economic climate, and good a good software program in financial management is the best way to generate these kinds of reports.

Financial management software often comes in suites or bundles of programs or modules, which are designed to work together to manage the data needed for professional accounting practices for the business. These modules include a variety of financial management tools that can generate the reports for the management of the business, as well as being able to easily handle the calculation of taxes.

The software packages that are available today for business finance money management are typically “all in one” solutions that include many modules for different aspects of business accounting. These various modules all work together and are designed to easily share information so that financial data only needs to be entered into the system once. This reduces the chance of errors that are often created when data has to be reentered numerous times.

Money management for businesses, whether small home-based businesses or large corporations, all come down to the same principles, so these software programs are essentially the same regardless of the size of the business. In most instances, the primary differences in software for business financial management for small business, as opposed to those for corporate financial management, is the potential limitation on the size of the database, the number of users who are allowed to access the software, and the networking capabilities of the program.

However, the basic functions of any good money management software program will include all of the basic accounting functions. In addition, there are personal money management software solutions on the market as well, which allow the user to have more control and better insights into their personal financial situation and which can also prepare personal tax reports and forms. This level of software can often be very effective for the person who is starting up a small home business.

The larger financial management software packages for businesses will also have modules that can handle all aspects of payroll, cash management account needs, check preparation and generation, and financial risk assessment and management. Because the money management for a company is so crucial to its success, it is important to spend sufficient time comparing the different options available, as well as making sure the software publisher is reliable and reputable.

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12 Areas to Include in Your Financial Management Operations Manual

From a process perspective, Financial Management is the easiest and simplest business process to take care of no matter what business you’re in. But it’s often the most avoided and neglected area of any business. So why is that? Well, in my experience it often comes down to our fears around money.

The best way to tackle fear is by using knowledge. Not avoidance. I work with many clients who at first will try their absolute best to avoid looking at their numbers, or not paying attention to it, in the hope that it will go away. But unless we know where you’re at right now, there’s no way we can improve it. This is where putting together a financial management process and documenting this in a financial management operations manual can be of huge benefit both to yourself as a business owner and to your business!

The type of Financial Management process that I take clients through is a method that I devised because I was probably way behind where you are now. It comes down to understanding some simple systems that you can then enhance to build your very own financial management process. Then putting that knowledge into a financial management operations manual so that your financial records are maintained in a consistent manner that you can get the information you want.

I have to be very clear with you here. I am not an accountant. My understanding of financial management comes from learning the hard way – by it costing me a fortune to NOT know. So over time, I developed my financial know-how and then devised systems and procedures to help me to be able to better manage my business finances.

And by the way, I have always had great financial people on my team. But they are made great by the fact that I have a system that they follow. This ensures that my data is recorded in a consistent manner, and that I’ve got my finger on the pulse of my business by having all the right reports available at the right time.

Here’s a quick high level checklist of what should be included in putting together your financial management process and operations manual:

1. ACCOUNTING ROLES: Clearly indicate who’s responsible for your money in your financial management operations manual. Understand the different roles of people who are doing the numbers in your business. Be clear about the difference between a bookkeeper and an accountant or financial manager and how each can benefit your business in the most cost effective way. Then put together job descriptions outlining who is responsible for what and how they interlink (or you can purchase complete job descriptions for your bookkeeper and financial controller at our website).

2. FINANCIAL REPORTS: Work out what reports you require to keep your finger on the pulse of your business – and then insist on receiving them on a weekly, fortnightly or monthly basis. Outline in your operations manual who is responsible for delivering these (this should be outlined in the job descriptions also!) and at what regularity. These reports should form the cornerstone of your business decisions. You can never have too much information.

3. YOUR ACCOUNTING SYSTEM: Many people rely on their bookkeeper or accountant to tell them what the best accounting system is to use. But don’t just take this information at face value. Investing in an accounting system is a big investment over time. Research the initial investment cost of any recommended system, as well as the continual costs to upgrade the system from year to year. Also consider how many bookkeepers are trained in this system. There is no point is purchasing an accounting system that is cheap as chips if there is no-one able to use it. This will just result in paying top dollar for a specialized bookkeeper and potentially more costs down the track to convert over to a less specialized system!

4. PROFIT AND LOSS PROJECTIONS: Every year prior to the end of your financial year, you should be putting together a profit and loss projection of what you want your business to be doing. This provides you with important “what if” scenario planning. It’s always better to know whether something is going to financially work before you embark on it!

5. BUDGETING: Budgets are the most known about and yet least used thing in most businesses. You should have an annual budget that has been derived from your Profit and Loss Projection then broken down into specific areas in your business. It also assists people (including your bookkeeper) in your business to know exactly what they can spend and what they can’t. It’s also an idea to ask your bookkeeper to enter the budget into your accounting system so that you can incorporate your budget into your Projected Versus Actual reports.

6. CASH FLOW ANALYSIS: I often get asked why a business is making a profit, but there’s never any money to spend. This is because there is a difference between cash flow and profit. It is essential that you ask for a cash flow analysis each month at a minimum – weekly would be better! This ensures that you have enough money in your bank to pay people when money is due, and allows you to chase up faster those that owe you money.

7. CONTROLLING COSTS: To control costs in your business you should have a purchasing system in place. Ensure that not a dollar is spent in your business without a purchase order and incorporate this into your company policy document. Every bookkeeper I’ve ever known baulks at this idea because it’s extra work for them. But at the end of the day, it keeps control over your money. With this system in place you will never have unexpected expenses arise that an employee has kindly organised for you.

8. ACCOUNTS PAYABLE: Outline and record in your financial management operations manual how your accounts are paid including the method and timeline. Also include any regular payments including direct debits, as well as other spending methods such as store cards or credit cards. Another tip is to include your petty cash system and employee (and director) expense reimbursement systems.

9. ACCOUNTS RECEIVABLE: Often business owners think that it’s common sense for a bookkeeper to know what to do in accounts receivable. But never for one moment think that your common sense is the same as your employees! Ensure that your financial management operations manual includes an overview of the system for dispensing goods and/or services, your credit terms, how to raise invoices and how to follow up on outstanding payments. I also encourage clients to include phone scripts on debt collecting in their operations manual so that there is no doubt as to how to handle clients. Nothing annoys a good client more than an accounts person chasing them for money and conversely, nothing annoys a business owner more than an accounts person who can’t get a definite payment date!

10. BANK ACCOUNTS: Make sure that your financial management operations manual includes an outline of bank accounts, including GST accounts and who credit cards are issued to. Also include an overview of online payment systems. However NEVER include details on your PIN numbers. This should be divulged in person and never written down.

11. Other things to include in your financial management operations manual should include items such as Fixed Asset Register, Insurances, Depreciation Registers and End of Year Procedures. Although these are generally covered by your accountant at the end of the year, it should also be included in your financial management operations manual so that your bookkeeper and/or financial controller know what steps to take to prepare the information for your accountant.

12. DATA BACKUPS: Your money records are THE most important records in your business. Ensure that your bookkeeper is saving your records to a device that is stored externally to the computer. Include information on how to back up to this device in your financial management operations manual.

What Should I Look For in Personal Financial Management Software?

We often underestimate the importance of proper financial management and simply rely on the fact that our bank balance is still in the black; however, we are at a loss to explain where all of the money went. It’s not unusual that many individuals are aghast when they look at their monthly bank statement and see that their paycheck deposit is gone through a series of many cleared checks. This situation can be unnerving to anyone, but if you are using personal financial management software, you can see at a glance what was spent, and what it did for you. It’s not just about saving money and paying off your credit card bills, but the software should present strategies to maximize saving, eliminate debt, and give a true picture of your current net worth. In short, a financial management program is a highly detailed and complex system that is vital to keep track of spending as well as net worth.

The first thing that comes to mind when considering personal financial management software is the process of budgeting. The heart of proper financial management lies in budgeting, as it helps to keep track of spending and earnings, while at the same time, gives a view of your overall financial condition. These software programs are usually incorporated with one of these two types of budgeting methods: Retroactive or Proactive budgeting. The former one allows you to create your own budget, and it keeps track, after the fact, whether you followed your set budget or not. On the other hand, Proactive actually assists you to make a budget, and guides you through so that you can achieve these budgeted goals. In most cases, under this method, you are asked to keep aside some additional money for emergencies. This money that is set aside, allows the software to make financial recommendation with much more confidence and accuracy.

Budgeting is most certainly a very important aspect of good financial management, but it isn’t the only one. Keeping track of your true net worth is also equally important. The budgeting process helps to keep track of our short and long term goals, and whether we achieved them. In order to properly track our net worth, we need to bring in the value of our bank accounts, stocks, bonds, real estate, etc., and update them regularly. The more complex personal financial management software systems have this process as well, and will give you an accurate picture of your financial position. This type of financial information can be key when it comes to making crucial financial decisions, or applying to your bank for financing. Also, in this fast paced and globalized world, many individuals tend to have more than one bank account, and often times, various financial interests, making the situation even more complex. Good personal financial management software will be able to track this and present an accurate picture.

In summary, budgeting and keeping an accurate track of your net worth are crucial when it comes to good financial management. When you are exploring options for effective personal financial management software, make sure the program is able to handle your current and future needs. In addition, a program that is relatively easy to use and presents the type of reports that you require, is a must.

Importance of Financial Management Degrees

At present, nearly all government or private organizations have at least one financial manager to guide investment activities, manage the groundwork of financial reports and develop and carry out cash-management schemes. These days, every organization, whether big or small has financial managers, and they hold a key and responsible position.

Although, responsibilities of a financial manager vary according to the position, but some of the common work includes preparing reports that are generally required by regulatory authorities. They also play important role in managing the preparation of financial reports, such as balance sheets, income statements and analyses of future earnings or expenditures. All these describe and determine the organization’s financial position. In many firms, financial managers are the key personnel who administer the accounting and budget departments.

Financial managers also called as financial consultants or personal financial advisors use their knowledge of investments, tax laws, insurance and real estate to recommend financial options to individuals based on their short-term and long-term goals. Considering the work responsibilities and expectations of employers every firm looks for a skillful employee who can direct their business to the right path. Hence, to compete with ever changing requirements of employers getting a degree in financial management is must.

Typically, a career in the financial management needs at least a master’s degree. Courses available in the financial management in the United States include fundamentals of business law, accounting, management principles, e-commerce, ethics, finances, tax laws and other related topics. These programs help students learn the skills of focusing on different aspects of business like systems integration, business strategies, e-commerce, technology consulting, and human resources. With Master’s degree you can have a greater opportunity for promotion and advancement in your career field.

Since, financial managers can be found in every organization, their demand goes higher than any available positions in the market. Moreover, employment growth for financial managers is anticipated to be as fast as the average for all occupations. Apart from this greater demand for highly skilled financial professionals, make the career outlook even more excellent.

In fact, if we study the recent data then by the year 2016 the demand is expected to grow by 13%. Regulatory reforms along with the expansion and globalization of the economy will raise the need for financial expertise and drive job growth. Both the creation of new businesses and growth of established companies will spur demand for financial managers, controller, treasurer/finance officer, credit manager, cash manager, and risk/insurance manager.

Hence, to get into the rush of grabbing a honourable and responsible accounting position the first and foremost thing is to equip yourself with all the skills, which are in high demand in the financial market. For this you need to enroll in a recognized school where you can learn all the techniques of managing finance.

Improving Your Profitability Via Financial Management System

A good part of the success or the failure of a business has to do directly with how much profit the organization realizes from the sale of the products or services that the company provides to its customers. In order to maximize a company’s profitability, it is very important to have a good and complete financial management system to handle the important aspects of money management.

One of the keys to a good business financial management structure is controlling the daily, weekly, monthly and yearly expenses of the operation. This comes down to simple math and cash management principles. Companies will not be profitable, and therefore won’t stay in business long, if they spend more than is required to produce and deliver their product, and end up trimming their profit margin so that it is just too thin to make the business viable.

Keeping overhead expenses in check and making sure that the cash in the business is managed effectively through a financial management system will help make a company better able to compete in the marketplace. When expenses get too high, it is hard to compete effectively and a competing company can easily start luring away customers based on price.

One of the most important people involved in good business financial management is the treasurer of the board. He or she is typically charged with the responsibility to oversee the money management for a corporation. The person in this role should come to the job with a wealth of business cash management experience, a strong level of wisdom and a firm understanding of corporate financial management. With the treasurer strongly armed with these money management skills, the corporation stands a much better chance of being strong financially and being able to ride out the storms of business and economic challenges.

Another key person on the team that oversees the entire business financial management practices for a corporation is, of course, the accountant. It is the corporate accountant and his team, depending on the size of the company, that will deal with the minute and detailed money management for the company on a daily or sometimes hourly basis.

The accounting department of a company will keep the books for the organization, will generate the various financial statements that are required both by government agencies and by the board of directors, and will conduct the financial analysis of the financial reports. This is the department that is entrusted with managing and enforcing departmental budgets, which is such an essential part of financial management systems, and essentially handles and accounts for every penny that flows in and out of the business coffers.

Nowadays, with the ubiquitousness of computers at every level of business and commerce, there is no doubt that any company that takes advantage of a complete financial management system for their operation will also be using sophisticated money management software as well. Even though the people in the organization bring the expertise and knowledge to the task of business financial management, the software chosen to help them do their jobs is critically important and much be chosen only after careful research and comparisons, with regard to the options available.

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Benefits of Making Use of Financial Management Consulting Services

Whether you are a private individual or a company, making use of financial management consulting services can prove very beneficial. These professionals have years of bookkeeping and accounting knowledge, which they use to provide you with a complete consultation service designed to help you maximize your cash flow and make necessary plans for financial growth moving forward.

The first benefit of any financial management consulting service, whether you are a private individual or a company, is that they help you plan and forecast for your financial future. These professionals will take a close look at your finances, your ledgers and your bank accounts. They will identify your assets and then work out an effective forecast based on what they see, helping you identify what to expect moving forward. They will also help you put a plan in place to meet the goals of the forecast, always working to improve your financial situation now and in the future.

The financial management consultants will take their time to analyses and assess your finances. As a private individual they will want to look at your bank statements, identify your spending, work on your income and expenditure. Analysis can help them pinpoint areas where you can reduce expenditure, while offing you a plan to help you build your financial products to achieve financial success in the future.

As a company, they will look at your bank balance and statements, they will identify your assets, they will work on your expenditure and then come up with effective ways to improve income and reduce expenditure, giving you a higher profit margin and an improved cash flow now and moving forward.

The financial management consulting service provider will also offer you effective and accurate reporting on a regular basis. They become your financial business partner, they will work with your in-house bookkeepers and accountants, ensuring that your company receives the most effective service, keeping you updated on progress, providing you with detailed reports and helping you when it comes time to appoint new suppliers, to ensure you continue to enjoy the best prices.

They will make certain recommendations. The benefit of them making recommendations is that their complete focus remains on helping you reduce your expenditure with ways to increase your income. As a private individual, you may not be able to increase your monthly income, but with the help of one of these consultants, you can make your money go further, even possibly making some good sound financial investment options to ensure your savings continue to grow at all times.

It is important that you pay close attention to some factors before you make any decisions and hire a financial management consultant. You want to choose a company that has years of industry knowledge and experience. The good news is that with cloud based solutions these days, you are not restricted to only hire the services of a company in your local area, you can choose a company anywhere in your country, which gives you access to the best management consultants that you can rely on and trust.

Ensure you do your homework, learning as much as you can about the company and the services they provide. Can they provide you with a complete financial management solution? Do they have an easy way for you to furnish them with essential financial information, such as a cloud based computer system? Do they guarantee accuracy and efficiency at all times? These are things you need to know to give you complete peace of mind when choosing your financial management consulting providers.

The Importance of Financial Management

The present world is synonymous with consumerism; therefore, management of finances is often a difficult task. Individuals can spend their money on a wide range of products or services. Over-indulgence in such products can lead to high credit card bills. In many cases, individuals spend their money before earning it, which can lead to a fiscal crisis. At this point, a financial management book comes to the rescue.

Every individual dreams of becoming a millionaire, especially in a relatively short period of time. However, dreams are not enough, and you will have to demonstrate effective monetary management. A management book contains useful resources and tips on how to manage your money.

A finance management book will give you definite steps to optimize your income and prevent losses. By reading it, you can equip yourself with a definite road map toward economic independence.

An important strategy listed in a finance management book revolves around changing your mindset. As a consumer, you would have to curb spending and wisely invest the money that you earn. Your perception of money should change if you wish to become wealthy. Most financial management books list effective habits and strategies, and it will do you a load of good if you master these habits. You should be able to understand the cash flow and manage it effectively, so that your income is more than your expenditure.

Almost every individual stands a chance of benefiting from knowledge related to monetary management. Every individual and business has financial concerns and hence it is important to learn the nuances of finance.

Fiscal management can be a tricky issue, and hence a financial management book is very handy. Effective financial management should help curb stress related to finance. Financial management equips you to pay your bills on time, and simultaneously have a good social life. Some of these books have been written by experts in this field, giving great insight, depth and knowledge. Financial management books are worth the investment if you can learn and master the listed strategies.

An important financial management strategy is to limit purchasing products on credit. Effective management programs help you save money for future needs.

The first step in management is making a list of all the sources of income. Follow this by a list of all your monthly expenditures. If you still have money left after taking care of all your expenditures, then you would need to invest this money in an effective way. Having an emergency fund is a great way to tackle unexpected expenditures.

Financial management can help if you wish to have a healthy, post-retirement life and a nice vacation home. It also helps you to take care of your child’s education, especially college fees.

Finance Management Courses – Why Financial Management is a Popular Program

Finance management or financial management is that aspect of management which involves the application of general management principles to specific financial operations. It basically entails planning within a business enterprise to ensure a positive cash flow and maximize shareholder wealth. Financial management includes a large number of complex practices and processes, including the administration and maintenance of financial aspects and identifying and managing risks.

The decisions that financial managers need to make are in regard to financing, investments, payouts of dividends, and working capital management. They generally encounter difficulties in the form of measurement problems, uncertainty, and temporal spread. Financial managers need to be conversant with the tools and concepts of financial management, such as capital budgeting, sources of finance, various types of financial statements, financial accounting, financial reporting, and risk management.

Managerial or corporate finance is the task of providing funds for a corporation’s activities. Its goal is the maximization of the company’s wealth and the value of its stock, while balancing risk and profitability. People entrusted with the financial management of corporations must be sound in the practices of financial management if they are run an organization successfully.

Given the importance of financial managers in today’s business environment, it is not surprising that a wide variety of courses from the full-time MBA to the online courses abound.

Finance is perhaps the most popular choice for candidates seeking management degrees. The role of the financial manager is to oversee the generation of financial analysis and reports to help with the company’s decision making, business development, and more importantly, strategic planning. The job of the financial analyst is to use these tools and devices to shape the company’s investments and business growth. Financial analysts and managers today play a crucial role in effecting mergers and global financing and expansion.

If you are looking for a role in finance in a medium to large corporation, the degree program is what you will need to look at, given the complexities of financial management in large corporations. When choosing a program, remember that with finance and management degrees, the institute that you pick must be reputable and recognized in the field. Accreditation bodies exist specifically for MBA programs to oversee the consistency and quality of business education, so it is preferable for a student to select a program that is accredited.

If however, you are already running your own small or medium enterprise or non-profit organization, and need to apply the tools of financial management to run your organization more effectively, you can opt for the shorter courses or the online programs offered by the many institutes.

Several MBA programs offer tailor-made courses that could be full-time, part-time, and distance learning courses with specialized concentrations. Accelerated MBA programs involve a higher course load and more intense and examination schedules. Part-time courses are another option, with classes being held in evenings, after normal working hours, or on weekends. Executive MBA programs are developed to meet the training needs of full-time managers and executives, allowing them to earn their degrees without compromising their jobs.

From this spectrum of financial management courses, there is truly one for each one to enhance our own financial management skills and take our enterprises to the cutting edge!