How Much Does A Financial Manager Make? (With Work Duties)
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Financial managers work in a wide range of business sectors to plan, develop and monitor company budgets, investment activities and long-term financial goals. It is a profession that requires a high level of mathematical proficiency, analytical skills and attention to detail and offers diverse career opportunities. Understanding the earning potential of financial managers can help you decide whether a career in financial management might be right for you. In this article, we discuss how much does financial manager make, explore the roles and responsibilities of these professionals and review some high-paying career paths for financial managers.
How much does financial manager make?
Knowing the answer to "How much does financial manager make?" can help you decide whether a career in this field would be suitable for you. The national average salary for a finance manager is ₹7,45,453 per year. They may earn profits and commissions and take part in profit-sharing ventures. The exact finance management salary can depend on multiple factors, such as the employer, location, educational qualifications, experience and skills.
Why are financial managers highly paid?
Organisations often pay high salaries to financial managers because of the specialised financial knowledge and skills required in this position. There is also a growing demand in different industries for competent and experienced finance professionals where businesses are willing to pay for the best talent. The attractive salary of a financial manager reflects the broad responsibilities they assume and the critical contributions they make to the success of various organisations.
Duties and responsibilities
Financial managers have the following work responsibilities:
creating and monitoring the financial budgets of company departments
making extensive finance-related forecasts for the company
tracking ongoing expenses and staying on budget
alerting departmental managers if they exceed the budget
initiating projects and assigning work tasks to the staff
monitoring progress on current projects.
conducting performance evaluations and providing feedback
preparing accurate financial reports for senior executives
Qualifications of a finance manager
It is essential to have advanced educational qualifications to become a financial manager. Most employers require finance manager candidates to have at least a four-year bachelor's degree in accounting, finance, economics, management or business administration. For senior finance roles, you may require a master's degree, such as a Master of Business Administration (MBA), a Certified Public Accountant (CPA) certification or a Chartered Accountant (CA) certification. You also require a high level of proficiency in using various financial applications and reporting tools.
Skills requirements of financial managers
Financial managers require the following industry-specific skills to do well professionally:
payroll tax compliance
SAP financial accounting and controlling
What experience is necessary to become a financial manager?
These professionals require significant professional experience in business or finance to become financial managers. Many professionals have at least five years of experience as financial analysts, accountants, securities sales agents or in other financial roles prior to moving on to a management position. Their work experience can make an important difference in the salaries of financial managers. A junior financial manager may earn less than the national average, while those with ten years or more of work experience may earn a higher salary.
Related high paying jobs in finance
Some of the related high-paying jobs in finance are as follows:
National average salary: ₹2,15,327 per year
Job description: Staff accountants work in the accounting departments of companies. They prepare financial forms, organise financial records, maintain general ledger accounts and ensure financial statements are accurate and legally compliant. They also analyse financial information, assist with budget processes, review performance projections and file tax returns. Besides this, they also help carry out audits.
National average salary: ₹2,70,346 per year
Job description: The financial accounts and operations of an organisation come under the mandate of a financial administrator. They undertake financial planning for the business, analyse financial data, optimise financial management processes and comply with industry regulations. Along with preparing financial reports, income statements and balance sheets, they resolve account discrepancies, identify financial liabilities and perform risk analysis.
National average salary: ₹2,79,300 per year
Job description: A financial accountant leads a multi-disciplinary team that is responsible for accounting, budgeting, internal and external audits and tax payments of an organisation. They gather financial information, analyse business costs and revenues, prepare income statements and balance sheets and advise senior departmental managers about their budgets and investments. They monitor accounting inconsistencies, stay abreast of financial policies and help businesses apply best practices and comply with tax regulations.
National average salary: ₹3,10,492 per year
Job description: Auditors review the financial records of businesses to ensure they are valid. They comply with accepted accounting principles and prepare reports and financial statements. In addition, they work with corporate management to correct financial errors, implement cost reduction and risk aversion measures and detect accounting fraud.
National average salary: ₹3,27,934 per year
Job description: Bookkeepers are responsible for recording a company's daily financial transactions. Along with monitoring its sales revenue, expenses and purchases, they check receipts and invoices, handle payroll records and process tax forms. They enter all pertinent financial information into general ledgers and ensure accuracy. Where a company creates a balance sheet, it refers to the information in those ledgers.
6. Tax preparer
National average salary: ₹3,46,234 per year
Job description: Also referred to as tax accountants, these professionals have extensive knowledge of tax settlements. Their primary responsibility is the preparation and submission of tax return forms to the tax authorities on behalf of their clients. As part of their work, they review and audit the income and expenses of their clients and advise them on the filing process to maximise their returns. They may also assist them with future tax planning.
National average salary: ₹4,15,553 per year
Job description: A financial analyst reviews the past and current financial data and business performance of a company and works with the management team to make long-term strategic plans for improving financial and business growth. They perform market research and identify market trends to make business forecasts, develop financial models, initiate financial policies, plan budgets and look for investment opportunities. They assist the accounting team with financial reporting, cost analysis and the development of automated reporting tools.
National average salary: ₹6,24,488 per year
Job description: It is the job of a financial planning analyst to review a company's past financial performance, understand the key factors in it and use these to make predictions of its future financial performance. They undertake accounting, financial project management, internal auditing, tax management, revenue allocations and performance measurements. Financial planning analysts often work as a team and collaborate with professionals from different parts of the business, such as sales, marketing, accounting and operations.
They report to the company's chief executive officer (CEO) and the chief financial officer (CFO). Many financial planning analysts have expertise in risk management, acquisitions and divestments and actuarial analysis.
National average salary: ₹7,25,521 per year
Job description: Actuaries use mathematical modelling, statistical concepts and risk analysis techniques to identify and assess the financial risks businesses may face and the costs they may incur. They audit companies for actuarial information and prepare reports, valuations and presentations. Using actuarial information, they help businesses develop trade and financial policies to mitigate risk and expense. They also take care of acquisitions and mergers.
National average salary: ₹9,73,501 per year
Job description: These professionals oversee a company's strategic financial planning and implement its financial operations. They are accountable for its accounting and financial services and supervise the work of auditors, management accountants and other employees. Their responsibilities include the monitoring of the company's revenues and expenditures, preparing detailed financial reports and compliance with financial regulations. After reviewing and assessing market conditions, they make recommendations for developing business budgets, establishing financial targets and exploring business growth opportunities. They evaluate potential risks, recommend solutions to financial problems, conduct financial analyses and prepare financial reports.
National average salary: ₹10,20,051 per year
Job description: Also known as chief accounting officers, they handle an organisation's accounting and maintain its ledgers. They oversee its revenues, prepare operating budgets and manage financial operations. Besides this, they also prepare income statements, financial reports and tax reports. They also assess financial risks for the company and oversee its audit processes.
Salary figures reflect data listed on Indeed Salaries at the time of writing. Salaries may vary depending on the hiring organisation and a candidate's experience, academic background and location.
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