Financial management is an excellent career path. Not only does it provide you with high-income potential, but it also provides you with job security since the need for these professionals continue to grow.
If you have a BCom degree and would like to work in finance, there are several approaches you can take.
REGENT offers various courses that could help you advance your financial skills to gain managerial positions.
This article will discuss financial management, what it involves, and how you can become a financial manager after BCom.
What is a financial manager?
Financial managers are professionals who perform data analysis and look after the financial health of an organisation. While they typically work for companies, they can also work as freelancers to help individuals with their finances and investments.
They are responsible for ensuring the company spends its money in the best way possible by creating financial reports, directing investment opportunities, and developing long-term plans to reach financial goals.
Though financial managers have different responsibilities, depending on their specific role, these are their general duties:
- Control the financial planning of a business
- Evaluate key figures
- Forecast financial needs and performance
- Strategically plan financial spending
- Predict future financial trends
- Oversee operations in the finance department
- Find ways to reduce company costs through budgeting and research
- Prepare business activity and financial reporting
- Ensure legal financial requirements are met
According to the BLS, employment of financial managers is projected to grow by 17% from 2021 to 2031 — much higher than the average growth of careers.
This career path continues to grow because companies of all sizes require financial professionals to help manage their finances.
Type of financial management roles
As mentioned above, there are different types of financial managers. These include, but are not limited to:
Financial controllers: Financial controllers are responsible for helping the company decide how to spend money by doing financial forecasting. They also create profit-and-loss statements, provide timely and accurate company accounting records, and more.
Credit managers: Credit managers are responsible for managing their company’s credit. They handle various tasks, such as creating credit scoring models, predicting risks, negotiating loan terms, and monitoring company payments.
Senior financial managers: Senior financial managers are responsible for the company’s financial operations and decisions. They need to manage the company’s capital and ensure the money is spent on the right things to help the company grow.
Financial directors: Financial directors are responsible for leading the financial team of an organisation. They are the big decision makers and need to direct the entire financial department by creating strategic financial plans based on reports provided to them. They also need to schedule, hire, and perform performance reviews on finance staff.
Risk manager: Financial risk managers limit companies’ financial loss probability. They consider several factors, including currency or commodity price changes, to determine whether the company should take a risk.
Is financial management the right career for you?
Financial management is an excellent career choice when it comes to job security and income potential. As seen earlier, the need for financial managers grows as more businesses are established yearly.
Financial managers also have the potential to earn high salaries, with the average annual salary for this career in South Africa being around R550,000.
However, regardless of these great benefits, you must consider whether your skills and interests align with this career. Some of the most common skills financial managers need include the following:
- Leadership skills
- Math skills
- Strategic and analytical abilities
- Proficiency in Microsoft Office and PowerPoint
- Organisational skills
- Personal integrity and the ability to keep company information confidential
- Presentation skills
- Quantitative skills
Discover the top eight management skills all business leaders need.
You also need to consider whether you are interested in the financial industry and see yourself working with accounting and finances every day.
What do you need to become a financial manager?
To become a financial manager, you typically need to have the following:
- A degree in finance, management, accounting, economics, business administration, mathematics, or other related fields.
- Five or more years of work experience in a financial role.
Steps to become a financial manager after BCom
Here are the steps to becoming a financial manager after BCom.
1. Gain experience in the financial field
Since you already have a bachelor of commerce degree, you can apply for numerous positions within the business industry.
Generally, when it comes to financial positions, employers prefer to hire BCom graduates who majored in accounting or finance. However, a major in economics or general business could also work.
You will likely need to apply for an entry-level financial position since you are mainly looking to gain work experience at this point in your career. This way, you will gain experience working directly with clients and within business teams.
Some entry-level financial positions you could consider include:
- Financial Assistant
- Accounting Assistant
- Financial Analyst
- Bookkeeper
Learn how to break into the accounting industry without any experience.
2. Consider getting a master’s degree
You can also consider getting a master’s degree to increase your knowledge and show employers you are willing to do what it takes to climb the corporate ladder.
A master’s degree will teach you advanced financial practices, build confidence, and make you feel more equipped for managerial positions.
3. Apply for management positions
As mentioned earlier, you typically need five years of experience working in the financial industry to be eligible for managerial positions.
After you have worked in entry-to mid-level roles, you can apply for a financial manager position at your current company or other companies in your industry. You can also join networking events to learn about job opportunities from other professionals.
Study finances with REGENT
If you have decided that you would like to move your career into finances, you have several options if you already have a BCom degree.
First, you can apply for entry-level financial positions to gain experience while making a decent income.
Suppose you want to gain managerial positions quicker. In that case, you can further your studies by studying for a master’s degree or a postgraduate diploma in accounting (while working full-time), which will help build your knowledge and confidence.