Why Should One Become a Finance Manager?
Pursuing a career in the finance industry comes with great benefits as the demand for finance experts never goes down. Primarily, finance managers have a profile that has assured salary growth with experience. The profile also promises steady upward mobility that would satisfy an ambitious candidate. This also means that finance managers enjoy immense job security.
Unlike other lucrative jobs, a finance manager’s role comes with a lot of challenges that would ensure constant learning. Such complexities provide intellectual stimulation that is essential to maintain interest in any job. However, some people may find such challenges stressful, they can find comfort in the fact that the role usually allows flexible working hours.
What are the Duties of a Finance Manager?
Finance managers are accountable for the financial health of their organisations. Hence, the job comes with major responsibilities that include:
- Conducting various financial analyses to determine the current financial state of the company and predicting the future conditions.
- Working closely with the management to strategise and execute investments and fundings.
- Carefully inspecting financial and legal documents and ensure that the internal and external regulations are being adhered to.
- Creating and reviewing financial reports to minimise losses.
- Analysing market and economic trends to determine expansion opportunities.
- Handling the budgeting vertical of companies.
- Collaborating with auditors to conduct annual monitoring.
- Research and creating reports on aspects affecting a company's financial performance.
In order to perform these duties to the best of their capabilities, finance managers must keep themselves updated with changes in laws related to investment, taxation, and accounting. They must also closely monitor the national and international markets to ensure that the company’s interests are met.
What are the Skills Needed to Become a Finance Manager?
Considering the critical role that a finance manager plays in a company, recruiters look for some crucial skills in potential candidates. Let us take a look at some of the skills that all finance managers must have.
1. Mathematical and Analytical Skills
One might argue that in the age of technology, one might get away without mathematical and computing skills. However, that is not the case. A finance manager has to deal with big numbers, and it is essential that they apply these skills while strategising and making decisions.
2. Business Awareness
A finance manager should be aware of the latest developments in industries, demonstrate a deep understanding of competitors and the economic conditions that may affect their company, as well as focus on their company’s commercial priorities for overall growth.
3. Technical Know-How
As finance managers, one might have to use a variety of finance-based softwares, analyse data, manage balance sheets, and produce reports. In such cases, it is essential that a potential candidate not only have the knowledge but also the experience of using such software.
5. Effective Communication
Since finance managers are required to convey their understanding and strategies to the others in a clear and concise format, it is essential that they are proficient in verbal and written communication. This way, they will be able to help others understand complex financial information in a simple manner.
How to Become a Finance Manager?
If you have decided to become a finance manager, there are some essential academic milestones that you must achieve.
First, it is important that you have pursued the Commerce stream in your secondary education (10+2). This means that you must have exposure to Accountancy, Business studies, Economics, and Mathematics to be eligible to pursue a career in financial management. For the unreserved category, it is essential to score at least 50% to be eligible for the entrance examinations.
Students can opt for the following degrees to pursue a career in financial management. These are:
- BSc (Bachelors of Science) in Accounting and Finance
- BBA (Bachelors of Business Administration) in Finance and Accounts
In order to pursue these degrees, some universities may also ask you to appear for entrance examinations such as
- Delhi University: DUET (Delhi University Entrance Test)
- Indraprastha University: IPU CET (Indraprastha University Common Entrance Test)
- Jamia Millia Islamia: JMI EE (Jamia Millia Islamia Entrance Examination)
- Jawaharlal Nehru University: JNU EE (Jawaharlal Nehru University Entrance Examination)
- Narsee Monjee Institute for Management Studies: NPAT (National Test for Programs after Twelfth)
Some of the top colleges and universities offering the three-year BBA (Bachelors of Business Administration) course are:
- St Xavier’s College, Mumbai
- Christ University, Bengaluru
- Loyola College, Chennai
To increase their chances of employment and acquire higher salary packages, students may choose to pursue post-graduation in MBA (Masters of Business Administration) in Finance Management.
Below are the entrance examinations that one must appear for in order to pursue an MBA in Finance Management:
- Common Admission Test (CAT)
- Management Aptitude Test (MAT)
- Xavier Aptitude Test (XAT)
- Symbiosis National Aptitude Test (SNAP)
- Common Management Aptitude Test (CMAT)
Prospective candidates can refer to the schedule given below for these entrance examinations.
In order to get admission in the programme for MBA in Finance Management, candidates should score at least 50% in their bachelors. In the selection process, the combination of their score in bachelor's degree and entrance examination would be considered.
Tips to Crack MBA Entrance Examinations
The standard duration of MBA (Masters of Business Administration) entrance examinations is between 120 to 180 minutes. The examination papers are usually divided into three to four sections. These sections include:
Here, the candidate’s language proficiency is tested through grammar and reading comprehension questions. To prepare for this, candidates must read a variety of passages that would help in developing their comprehension skills.
Here, the focus is on testing a candidate’s logical and analytical thinking. Therefore, it is important that one pay attention to detail, be quick to think and come up with out-of-the-box solutions.
This section deals with a candidate’s mathematical skills. However, rather than focusing on complex theories, candidates must familiarise themselves with number functions and focus on increasing their mathematical speed.
Since some of these entrance examinations also include negative marking, it is important that candidates be extremely careful when answering questions.
- It would also help if candidates solve past papers and time themselves while doing so.
- To improve vocabulary, candidates can also use game-based apps to make learning fun.
- Solving puzzles and situation-based questions will help in developing logical thinking.
However, along with the preparation, it is important to strike a balance with nutritious food, timely breaks, and adequate sleep. This would ensure that you are mentally and physically ready for the examination.
Breakdown of MBA in Finance Management
An MBA in Finance is a two-year professional degree where students are exposed to market and economic trends, accounting, and other subjects related to corporate finance.
To understand what an MBA in Finance Management syllabus can offer you, let us look at some important subjects that the course offers:
To make their profile stand out, potential finance managers can also choose to pursue certifications such as:
- Chartered Financial Analyst (CFA)
- Certified Public Accountant (CPA)
- Certified Treasury Professional (CTP)
Job Prospects and Salaries Available after MBA in Finance Management
Once you have completed an MBA in Finance Management, several career roles are open for you, such as financial analyst, investment banker, equity researcher, and capital advisor.
Some of the top companies that hire finance managers are:
- HSBC Bank
- Bain & Company
- Boston Consulting Group
- JP Morgan
- Goldman Sachs
The salaries for finance managers who are freshers after an MBA in Finance Management in India is usually between ₹3 lakh to ₹7 lakh per annum. For experienced candidates, this could be between ₹10 lakh to ₹17 lakh per annum.
Some Frequently Asked Questions About MBA in Finance Management
What is the full form of MBA?
The full form of MBA is Master of Business Administration.
Which are some top industries that hire finance managers?
Some of the top industries that hire finance managers with an MBA in Finance Management are media, retail, charities, banks and insurance companies.
To enter an IIM, what is the minimum percentile that one must score in CAT or other entrance examinations?
Getting admission into an IIM is not only dependent on the result of the entrance examination, but also on a candidate’s profile. However, recent trends show that a candidate should have a 95 and above percentile to get through any of the IIMs.
What is the average salary offered to a Finance Manager?
Based on the data collected through various campus recruitments, the average salary offered to a finance manager is ₹7 lakh per annum.
Which are some top universities abroad to pursue MBA in Finance Management?
Some top universities where one can pursue an MBA in Finance Management are
- Australia: University of Sydney, Australian National University
- Canada: University of Toronto, McGill University
- USA: University of California, Berkeley (UC Berkeley),Columbia University
What is the MBA Fee Structure?
The fee structure for an MBA in Finance Management varies across government and private institutions. Some examples are given below:
Are There Loans Available For an MBA in Finance Management?
Since Master of Business Administration (MBA) is one of the most sought-after degrees in India, several banks offer loans to candidates to pursue this degree. This includes:
- State Bank of India Student Loan Scheme
- ICICI Bank Education Loan
- Allahabad Bank Education Loan
- HDFC Bank Education Loan
These loans are offered at varied interest rates. There are also organisations like Propelld offering 100% digitised private student loans.