Financial Manager: Salary and Career Facts [2022 Guide]

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Last updated on
13th Jul, 2022
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26th May, 2022
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Financial Manager: Salary and Career Facts [2022 Guide]

Finance is one of the most critical elements of every business. From the company’s day-to-day running, purchasing assets, paying salaries, hiring staff, and paying off debts, finance is the lifeblood of any business.  

Dealing with your company’s finance is a pretty complicated task. You need to know your portfolios, current tax rates, government regulations, and more to be at the top of your business. Not every business owner is inclined towards finances or even trained to handle this complex business side.  

This is where the role of a finance manager comes into a company.  

If you aspire to have a career in finance, this article is all you need. We will explore the indispensable role of a finance manager and the critical things that can fuel their career growth.  

What Does a Finance Manager Do?

Let’s start with the basics and understand what a finance manager does. A finance manager oversees a company’s financial health and ensures it remains viable.  

They manage processes such as accounting, profitability, expenses, and financial reporting.  

Earlier, a finance manager was majorly required to produce financial reports. But with an increase in globalization and hyperconnectivity, the current role of a finance manager looks drastically altered. They now need to deal with a lot of data to analyze, strategize, and plan their company’s finances. They also need to be adept at credit and risk management, international financial regulations, derivatives, and even cryptocurrencies.  

Here is a summing up of the roles and responsibilities of a finance manager:

  • Understanding their company’s financial health and the working of the capital markets.
  • Creating financial reports.
  • Projecting profits for the company.
  • Managing the company’s credit and loans.
  • Advising the management on financial decisions.  
  • Creating budgets and helping the company to stick to them.
  • Helping to raise funds for the business.  
  • Allocating funds towards the business needs and goals.
  • Analysing financial trends and looking for growth opportunities.  
  • Maximize wealth for business owners and other stakeholders.
  • Negotiating with the company’s banks and financial institutions.  

What Is the Average Financial Manager’s Base Salary?

The role of a financial manager, as explained above, is critical for any and every business. Without this position, a company cannot hope to run profitably for a long time. That’s why this role is given premium importance and adequately compensated.  

The average finance manager’s salary in India is around INR 10,00,000 per annum. In the United States, the middle finance manager’s job salary is around $ 90 701. This comes out to almost INR 70, 57, and 172.

Which Factors Determine a Financial Manager’s Salary?

Like any other role, the financial manager’s salary depends on several factors. These include:

Salary By Location

The city you live in plays a huge role in the amount of salary you can expect to receive. Every town has different averages for financial operations manager salaries. This is because every city has an additional cost of living.  

The metro and tier-I cities have higher salary payouts than smaller tier-2 cities.  

Let’s take a look at the average salary trends in different Indian cities:

City
Salary (Per annum in INR)
Bengaluru14.6
Mumbai13.1
New Delhi11.9
Gurugram15
Chennai12.8

Salary By Experience

The experience you have as a finance manager is directly proportional to the amount of salary you can expect to get. This is because a higher vintage translates to more stability and skills. Here’s a rough breakup of financial manager salary by experience:

  • Early career finance manager salary: A finance manager who is just starting his career and has an experience of less than a year can earn close to INR 5.15 lacs per annum.
  • Entry level finance manager salary: A finance manager who has an experience of one to four years can earn around INR 7.50 lacs per annum.
  • Mid-level finance manager salary: A finance manager with five to nine years of experience may earn around INR 10 lacs per annum.  
  • Senior-level finance manager salary: A senior finance manager’s salary can get close to INR 12 lac per annum. This is when a candidate has an experience of more than ten years.

Salary By Education

The more qualifications you have, the more your salary can be. For instance, a candidate with a degree in finance or who has done any of the courses on DevOps will be preferred over someone who doesn’t have these educational qualifications.  

Which Are Some of the Top Companies for Finance Managers?

If you are looking to start applying for the role of a corporate finance manager but don’t know where to start, you needn’t worry anymore. Here is a list of some of the best companies for a finance job:

  • Barclays
  • Goldman Sachs
  • Boston Consulting Group
  • Morgan Stanley
  • McKinsey & Co.
  • KPMG
  • HDFC
  • State Bank of India

Which are the Best-paid Skills and Qualifications for Finance Managers?

Just like any other role, as a finance manager, you cannot afford to stay stagnant in terms of your skills. You need to upgrade your skills and qualifications constantly. This has several benefits, such as staying relevant in the job market and letting you have better bargaining power when it comes to payments.  

Let’s take a look at some skills necessary for your career growth as a financial reporting manager:

  • Leadership
  • Communication, networking, and interpersonal skills
  • Attention to detail
  • Problem-solving skills
  • Analysis
  • Technological skills
  • Honesty and values.
  • Transparency
  • Strategic and analytical skills.
  • Knowledge of the industry.
  • Ability to work in teams and independently

Besides these, as a financial planning and analysis manager, here are some advanced skills that help you gain more knowledge about your field:

  • Understanding and analyzing financial statements.
  • Cash versus accrual accounting.
  • Proficiency in mathematics.  
  • Variance and financial analysis.
  • Budget is making and presenting.
  • Financial reporting.

One of the best ways to gain all these skills is to undergo courses such as DevOps Foundation Training.  

How to Improve Financial Management Skills?

Once you have gained a certain year’s worth of experience, it always pays to upskill yourself. Here are some ways in which you can do that: 

  1. Technology is an essential part of any profession. Right from communicating with one another to allowing faster and more efficient services, information technology has quite an important role to play. As a finance manager, you can take up the relevant Fintech courses.   

  1. Think about strengthening your educational background. For instance, if you have a Bachelor’s degree, think of getting an advanced degree in economics or business administration. Courses in international finance and global economics are also great options. 

  1. Instead of being a generalist, you can focus on being a specialized finance manager. This may include honing your skills in specific aspects of finance such as insurance, treasury, risk management, etc. 

  1. Lend more credibility to your qualifications by earning a license or certificate. Some options include certifications such as CFA (Chartered Financial Analyst) or CPA (Certified Public Accountant). 

Conclusion

Financial management plays a pivotal role in any company. The conduit interconnects all other departments and allows a business to stay afloat and thrive. If you are good with numbers and understand technology, there will be no shortage of opportunities. Just make sure that you are set to take up challenges and keep upgrading yourself.  

Frequently Asked Questions (FAQs)

1. What does the financial manager do?

A financial manager is responsible for maintaining the optimized financial health of their business. They manage and oversee the daily tasks related to the business’s finances and perform financial analysis, plans, and reports.  

They also work with other department heads to ensure that all the financial requirements of the business are in sync.

2. What qualifications do I need to be a financial manager?

To become a financial manager, you must have cleared either the Masters of Business Administration (Finance), Post Graduate Diploma in Financial Management (PGDFM), or Master of Financial Controls (MFC)

3. What is the best part of being a financial manager?

The hardest part of being a finance manager is living up to the responsibility you have been endowed with. A company’s finances are not just critical for its survival but also classified. And, a finance manager has to deal with just this.  

However, with your understanding, ability to take ownership of your work, and problem-solving skills, this should not be a problem.

4. Do finance managers make a lot of money?

Yes, since financial management is an essential role, the financial manager’s salary per month commensurate with this. However, it’s not just the tag of a finance manager that will bring in more monies.

You need to constantly upskill yourself and keep yourself relevant to the changing needs of your job.  

5. How much does a financial manager earn?

The role of a finance manager is well-paid for. The salary of a finance manage

ranges anywhere between INR 5-30 lacs per annum. While these are generalized

average figures, they also depend on several factors. These include your skills

and experience, location, company you choose to work for, etc.

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Aditi Jain

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Aditi is a Senior Content Marketing Specialist at KnowledgeHut. She is an avid writer with a masters in English literature and specializes in long-form articles and crisp marketing copies. She loves playing the guitar and covers soothing songs. Scrolling Instagram is also part of her mindfulness!