Finance executives are responsible for overseeing their company’s income, expenses, investments and money transactions. To successfully perform this role requires typically possessing at least a bachelor’s degree in finance or accounting as well as strong analytical and management abilities.
Becoming an effective financial executive means being proactive and anticipating problems before they arise. Successful finance executives are skilled leaders who can inspire dedication in their teams while motivating them towards results.
Overseeing the Finance Department
Finance executives specialize in all matters financial for a business, from budgeting, income expenses and investments. Their primary purpose is helping their organization improve profit margins while decreasing expenses – while making strategic market moves to keep ahead of competitors. Most finance executives work full-time with strong accounting expertise.
Financial departments are organized into sub-departments with clearly established roles, powers and responsibilities for their subordinates. Finance executives usually hold bachelor’s degrees in finance, accounting, economics or another related discipline such as economics; many also possess master’s degrees or have obtained professional certification such as CFA certification.
Treasurers oversee investment strategies and raise capital to fund mergers and acquisitions; controllers satisfy government regulations for periodic documentation; credit managers manage overdue accounts; cash managers monitor funds entering or leaving through assets; and insurance managers identify policies to cover financial losses.
Developing and Implementing Financial Plans and Budgets
Finance executives use their analytical and modeling skills to forecast their company’s monetary growth, develop financial policies that address unique business requirements, manage accountants and other professionals under their supervision, as well as possess leadership qualities necessary for supervising them effectively. Finance executives must possess excellent written communication skills in order to draft reports that adhere to SEC guidelines while communicating their recommendations to senior officials within their organization.
Gaining the appropriate mix of finance and management skills requires extensive training – often including earning a master’s degree from a top institution. Kellogg Executive Finance program equips leaders to lead effectively from the front lines by teaching advanced strategic thinking techniques, business processes and the fundamentals of corporate finance. This immersive experience builds a firm foundation in knowledge while expanding practical understanding as well as increasing fluency with financial language – essential elements in supporting organizational strategies successfully.
Managing the Organization’s Investments and Financial Risk
As a finance executive, your duties may include monitoring the company’s investments and mitigating risks to reduce any unexpected losses. You could also develop financial plans and raise capital to expand business.
Finance executives need to be adept at deciphering complex financial reports and other documents. Furthermore, they require excellent communication skills so as to relay information quickly and precisely within both their department as well as throughout their company.
For those pursuing a career as finance executives, the minimum requirement for entry-level employment should be a bachelor’s degree in accounting, finance, economics or an related subject such as investment banking. Furthermore, some finance executives choose to earn master’s degrees in these subjects to further advance their careers and move into management roles more quickly. Work experience within related fields will increase your odds of landing entry-level roles more successfully.
Providing Financial Guidance and Support to Other Members of the Organization
Financial executives, controllers, VPs of finance, CFOs or any other top-level managers are accountable for strategically optimizing the bottom line opportunities of their companies. Therefore they have numerous responsibilities ranging from cash-flow statements and auditing.
Together with other departments, these financial professionals collaborate in developing business plans and budgets for their company, offering financial guidance in decision making processes while supporting key metrics and reporting needs. This requires both technical and business expertise.
Finance executives differ from accounts executives in that they possess strategic thinking skills and an in-depth knowledge of company business processes, making them invaluable assets in creating disciplined change that works towards a specific goal. Hiring an unsuitable executive could cost your organization up to $1.5 million; let Jennings Executive help find you the ideal financial executive candidate to meet its financial requirements.