What skills does a financial manager need?

A financial manager needs 37 essential skills including accounting department processes, funding methods, financial department processes, banking activities, financial statements. Core competencies include .

Will AI replace financial manager jobs?

The AI disruption score for financial manager is 75/100 (very high risk). Some tasks may be automated but the role will evolve rather than disappear entirely.

Management & LeadershipAdministrative and commercial managersISCO 1211

financial manager

Financial managers handle all the matters in reference to the finance and investments of a company. They manage financial operations of companies such as the assets, liabilities, equity and cash flow aiming to maintain the financial health of the company and operative viability. Financial managers evaluate the strategic plans of the company in financial terms, maintain transparent financial operations for taxation and auditing bodies, and create the financial statements of the company at the end of the fiscal year.

About financial manager

As a financial manager, you will oversee all financial operations of a company, ensuring its economic health and viability. Your day-to-day responsibilities include managing assets, liabilities, equity and cash flow, preparing financial statements, forecasting budgets, and analyzing investment opportunities. You will work closely with senior management to evaluate strategic plans in financial terms, ensure compliance with tax regulations and auditing requirements, and develop policies that maintain transparent financial operations. Your decisions directly impact the company's ability to invest in growth, manage risk, and maintain operational efficiency.

Key Work Functions

Core areas of responsibility for a financial manager.

Financial Planning and Budgeting

Develop and manage annual budgets aligned with company strategic objectives
Conduct financial forecasting to predict future cash flows and financial performance
Monitor budget performance and implement corrective measures when needed

Financial Analysis and Reporting

Prepare and present comprehensive financial statements including balance sheets, income statements, and cash flow statements
Conduct financial analysis to evaluate company performance, trends and profitability
Generate financial reports for stakeholders, board members, and regulatory bodies

Investment and Liquidity Management

Evaluate investment opportunities and make recommendations for capital allocation
Manage company liquidity to ensure adequate cash reserves for operations and obligations
Monitor banking activities and negotiate favorable terms with financial institutions

Compliance and Tax Management

Ensure compliance with tax legislation and prepare accurate tax returns
Work with auditors to maintain transparent financial records and facilitate auditing processes
Enforce financial policies and procedures across all departments

European Skills Framework

Skills and knowledge areas required for this occupation based on European classification.

Essential (37)

accounting department processesaccounting department processesThe different processes, duties, jargon, role in an organisation, and other specificities of the accounting department within an organisation such as bookkeeping, invoices, recording, and taxing.funding methodsfunding methodsThe financial possibilities for funding projects such as the traditional ones, namely loans, venture capital, public or private grants up to alternative methods such as crowdfunding.financial department processesfinancial department processesThe different processes, duties, jargon, role in an organisation, and other specificities of the financial department within an organisation. Understanding of financial statements, investments, disclo...banking activitiesbanking activitiesThe broad and continuously growing banking activities and financial products managed by banks ranging from personal banking, corporate banking, investment banking, private banking, up to insurance, fo...financial statementsfinancial statementsThe set of financial records disclosing the financial position of a company at the end of a set period or of the accounting year. The financial statements consisting of five parts which are the statem...financial forecastingfinancial forecastingThe tool used in performing fiscal financial management to identify revenue trends and estimated financial conditions.financial managementfinancial managementThe field of finance that concerns the practical process analysis and tools for designating financial resources. It encompasses the structure of businesses, the investment sources, and the value incre...securitiessecuritiesThe financial instruments traded in financial markets representing both the right of property over the owner and at the same time, the obligation of payment over the issuer. The aim of securities whic...liquidity managementliquidity managementThe theory and practices around the management of liquidity in a company with the aim of facilitating meeting obligations with thirds parties without compromising the smooth functioning of the company...cost managementcost managementThe process of planning, monitoring and adjusting the expenses and revenues of a business in order to achieve cost efficiency and capability.accounting techniquesaccounting techniquesThe techniques of recording and summarising business and financial transactions and analysing, verifying, and reporting the results.economicseconomicsEconomic principles and practices, financial and commodity markets, banking and the analysis of financial data.financial analysisfinancial analysisThe process of assessing the financial possibilities, means, and status of an organisation or individual by analysing financial statements and reports in order to make well informed business or financ...accounting entriesaccounting entriesThe financial transactions recorded in accounting systems or books of a company together with the metadata linked to the entry such as the date, the amount, the accounts affected, and a description of...tax legislationtax legislationTax legislation applicable to a specific area of specialisation, such as import tax, government tax, etc.accountingaccountingThe documentation and processing of data regarding financial activities.support development of annual budgetsupport development of annual budgetSupport the development of the annual budget by producing base data as defined by the operations budget process.manage budgetsmanage budgetsPlan, monitor, report on the budget and prepare set production budgets.prepare tax returns formsprepare tax returns formsTotalise all the deductible tax collected during the quarter or fiscal year in order to fill tax return forms and claim it back to the governmental authorities for declaring taxation liability. Keep t...enforce financial policiesenforce financial policiesRead, understand, and enforce the abidance of the financial policies of the company in regards with all the fiscal and accounting proceedings of the organisation.liaise with auditorsliaise with auditorsParticipate in discussions with the auditors conducting inspections of the organisation's accounts and inform the managers about the results and conclusions.analyse market financial trendsanalyse market financial trendsMonitor and forecast the tendencies of a financial market to move in a particular direction over time.strive for company growthstrive for company growthDevelop strategies and plans aiming at achieving a sustained company growth, be the company self-owned or somebody else's. Strive with actions to increase revenues and positive cash flows.monitor financial accountsmonitor financial accountsHandle financial administration of your department, keep the costs down to only necessary expenses and maximise the revenues of your organisation.control financial resourcescontrol financial resourcesMonitor and control budgets and financial resources providing capable stewardship in company management.create a financial plancreate a financial planDevelop a financial plan according to financial and client regulations, including an investor profile, financial advice, and negotiation and transaction plans.analyse business plansanalyse business plansAnalyse the formal statements from businesses which outline their business goals and the strategies they set in place to meet them, in order to assess the feasibility of the plan and verify the busine...prepare financial statementsprepare financial statementsCollect, entry, and prepare the set of financial records disclosing the financial position of a company at the end of a certain period or accounting year. The financial statements consisting of five p...evaluate budgetsevaluate budgetsRead budget plans, analyse the expenditures and incomes planned during certain period, and provide judgement on their abidance to the general plans of the company or organism.monitor charity's budgetmonitor charity's budgetMonitor and manage the charity organisation`s budget such as the annual income and expenditure, fundraising budgets and financial progress.advise on financial mattersadvise on financial mattersConsult, advise, and propose solutions with regards to financial management such as acquiring new assets, incurring in investments, and tax efficiency methods.analyse financial performance of a companyanalyse financial performance of a companyAnalyse the performance of the company in financial matters in order to identify improvement actions that could increase profit, based on accounts, records, financial statements and external informati...create a financial reportcreate a financial reportFinalise project accounting. Prepare an actual budget, compare the discrepancy between the planned and actual budget, and draw final conclusions.manage accountsmanage accountsManage the accounts and financial activities of an organisation, supervising that all the documents are correctly maintained, that all the information and calculations are correct, and that proper dec...liaise with managersliaise with managersLiaise with managers of other departments ensuring effective service and communication, i.e. sales, planning, purchasing, trading, distribution and technical.supervise accounting operationssupervise accounting operationsCoordinate, commission, and monitor operations in accounting departments in order to ensure the accurate record and eventual reporting of the financial operations of the company.follow company standardsfollow company standardsLead and manage according to the organisation's code of conduct.

Optional (66)

debt collection techniquesdebt collection techniquesThe techniques and principles used to collect overdue debt from customers.bookkeeping regulationsbookkeeping regulationsThe methods and regulations involved in the process of accurate bookkeeping.public financepublic financeThe economic influence of the government, and the workings of government revenue and expenditures.international financial reporting standardsinternational financial reporting standardsThe set of accounting standards and rules aimed at companies listed in the stock exchange which are required to publish and disclose their financial statements.fraud detectionfraud detectionThe techniques used to identify fraudulous activities.real estate marketreal estate marketThe trends concerning the buying, selling, or renting of property, including the land, buildings, and natural resources encompassed within the property; the categories of residential properties and pr...budgetary principlesbudgetary principlesPrinciples of estimating and planning of forecasts for business activity, compile regular budget and reports.statisticsstatisticsThe study of statistical theory, methods and practices such as collection, organisation, analysis, interpretation and presentation of data. It deals with all aspects of data including the planning of ...financial marketsfinancial marketsThe financial infrastructure which permits trading securities offered by companies and individuals govern by regulatory financial frameworks.debt systemsdebt systemsThe processes needed to obtain goods or services before payment and when a sum of money is owed or overdue.stock marketstock marketThe market in which shares of publicly held companies are issued and traded.business loansbusiness loansLoans which are intended for business purposes and which can either be secured or unsecured depending on whether a collateral is involved. The different types of business loans such as bank loans, mez...investment analysisinvestment analysisThe methods and tools for analysis of an investment compared to its potential return. Identification and calculation of profitability ratio and financial indicators in relation to associated risks to ...ethicsethicsThe philosophical study that deals with solving questions of human morality; it defines and systemises concepts such as right, wrong, and crime.national generally accepted accounting principlesnational generally accepted accounting principlesThe accounting standard accepted in a region or country specifying the rules and procedures to disclose financial data.corporate lawcorporate lawThe legal rules that govern how corporate stakeholders (such as shareholders, employees, directors, consumers, etc) interact with one another, and the responsibilities corporations have to their stake...financial jurisdictionfinancial jurisdictionFinancial rules and procedures applicable to a certain location, whose regulatory bodies decide on its jurisdiction.trace financial transactionstrace financial transactionsObserve, track and analyse financial transactions made in companies or in banks. Determine the validity of the transaction and check for suspicious or high-risk transactions in order to avoid mismanag...advise on risk managementadvise on risk managementProvide advice on risk management policies and prevention strategies and their implementation, being aware of different kinds of risks to a specific organisation.advise on tax planningadvise on tax planningAdvise on appropriate strategies to include taxes in the overall financial plan in order to reduce the tax load. Advise on questions related to tax legislation and provide advise on the possible impli...manage securitiesmanage securitiesAdminister the securities owned by the company or organisation, namely debt securities, equity securities and derivatives aiming to get the highest benefit from them.perform stock valuationperform stock valuationAnalyse, calculate and appraise the value of the stock of a company. Use mathematic and logarithm in order to determine the value in consideration of different variables.perform risk analysisperform risk analysisIdentify and assess factors that may jeopardise the success of a project or threaten the organisation's functioning. Implement procedures to avoid or minimise their impact.manage staffmanage staffManage employees and subordinates, working in a team or individually, to maximise their performance and contribution. Schedule their work and activities, give instructions, motivate and direct the wor...ensure information transparencyensure information transparencyEnsure that required or requested information is provided clearly and completely, in a manner which does not explicitly withhold information, to the public or requesting parties.prepare financial auditing reportsprepare financial auditing reportsCompile information on audit findings of financial statements and financial management in order to prepare reports, point out improvement possibilities, and confirm governability.liaise with financiersliaise with financiersLiaise with people willing to finance the project. Negotiate deals and contracts.ensure compliance with company regulationsensure compliance with company regulationsGuarantee that employees' activities follow company regulations, as implemented through client and corporate guidelines, directives, policies and programmes.manage profitabilitymanage profitabilityRegularly review sales and profit performance.estimate profitabilityestimate profitabilityTake various factors into account to calculate the cost and potential revenues or savings gained from a product in order to evaluate the profit that could be generated by the new acquisition or by a n...advise on investmentadvise on investmentAssess the customer's economic goals and advise on the possible financial investments or capital investments to promote wealth creation or safeguarding.synthesise financial informationsynthesise financial informationCollect, revise and put together financial information coming from different sources or departments in order to create a document with unified financial accounts or plans.interpret financial statementsinterpret financial statementsRead, understand, and interpret the key lines and indicators in financial statements. Extract the most important information from financial statements depending on the needs and integrate this informa...check accounting recordscheck accounting recordsRevise the accounting records of the quarter and year and ensure that the accounting information reflects with accuracy the financial transactions of the company.maintain records of financial transactionsmaintain records of financial transactionsCollate all the financial transactions done in the daily operations of a business and record them in their respective accounts.manage corporate bank accountsmanage corporate bank accountsHave an overview of the bank accounts of the company, their different purposes, and manage them accordingly while keeping an eye on their balance, interest rates, and charges.manage financial riskmanage financial riskPredict and manage financial risks, and identify procedures to avoid or minimise their impact.conduct financial auditsconduct financial auditsEvaluate and monitor the financial health, the operations and financial movements expressed in the financial statements of the company. Revise the financial records to ensure stewardship and governabi...promote financial productspromote financial productsInform existing or potential customers about the various financial goods and services that are offered by the company.liaise with shareholdersliaise with shareholdersCommunicate and serve as communication point with shareholders in order to provide an overview on their investments, returns, and long-term plans of the company to increase profitability.advise on public financeadvise on public financeAdvise public organisations such as governmental organisations on their financial operations and procedures, to ensure optimal efficiency.ensure cross-department cooperationensure cross-department cooperationGuarantee communication and cooperation with all the entities and teams in a given organisation, according to the company strategy.draft accounting proceduresdraft accounting proceduresLay down standard methods and guidelines to regulate bookkeeping and accounting operations, including determining the bookkeeping system used to record financial transactions.develop company strategiesdevelop company strategiesEnvision, plan, and develop strategies for companies and organisations aimed at achieving different purposes such as establishing new markets, refurbishing the equipment and machinery of a company, im...liaise with board membersliaise with board membersReport to the management, boards of directors and committees of an organisation.perform cost accounting activitiesperform cost accounting activitiesExecute the cost related activities and operations within the accounting activities such as standard cost development, average pricing analysis, margin and cost ratio analysis, inventory control, and ...perform project managementperform project managementManage and plan various resources, such as human resources, budget, deadline, results, and quality necessary for a specific project, and monitor the project's progress in order to achieve a specific g...develop financial productsdevelop financial productsTake into account the performed financial market research and the organisation's objectives in order to develop and oversee the implementation, promotion, and lifecycle of financial products, such as ...present reportspresent reportsDisplay results, statistics and conclusions to an audience in a transparent and straightforward way.ensure compliance with accounting conventionsensure compliance with accounting conventionsExercise accounting management and abidance by generally accepted accounting conventions such as recording transactions at the current price, quantifying goods, separating personal accounts of manager...execute feasibility studyexecute feasibility studyPerform the evaluation and assessment of the potential of a project, plan, proposition or new idea. Realise a standardised study which is based on extensive investigation and research to support the p...collect financial datacollect financial dataGather, organise, and combine financial data for their interpretation and analysis in order to predict possible financial scenarios and performance of a company or project.manage the general ledgermanage the general ledgerEnter data and revise the adequate maintenance of general ledgers in order to follow up on the financial transactions of the company, and other non routine transactions such as depreciation.budget for financial needsbudget for financial needsObserve the status and availability of funds for the smooth running of projects or operations in order to foresee and estimate the quantity of future financial resources.offer financial servicesoffer financial servicesProvide a broad range of financial services to clients such as assistance with financial products, financial planning, insurances, money and investment management.analyse insurance riskanalyse insurance riskAnalyse the probability and size of the risk that is to be insured, and estimate the value of the insured property of the client.provide financial product informationprovide financial product informationGive the customer or client information about financial products, the financial market, insurances, loans or other types of financial data.analyse financial riskanalyse financial riskIdentify and analyse risks that could impact an organisation or individual financially, such as credit and market risks, and propose solutions to cover against those risks.align efforts towards business developmentalign efforts towards business developmentSynchronise the efforts, plans, strategies, and actions carried out in departments of companies towards the growth of business and its turnover. Keep business development as the ultimate outcome of an...make strategic business decisionsmake strategic business decisionsAnalyse business information and consult directors for decision making purposes in a varied array of aspects affecting the prospect, productivity and sustainable operation of a company. Consider the o...implement strategic planningimplement strategic planningTake action on the goals and procedures defined at a strategic level in order to mobilise resources and pursue the established strategies.handle financial transactionshandle financial transactionsAdminister currencies, financial exchange activities, deposits as well as company and voucher payments. Prepare and manage guest accounts and take payments by cash, credit card and debit card.financial productsfinancial productsThe different types of instruments that apply to the management of cash flow that are available on the market, such as shares, bonds, options or funds.operate financial instrumentsoperate financial instrumentsWork with financial instruments such as stocks, bonds, mutual funds and derivatives.assess financial viabilityassess financial viabilityRevise and analyse financial information and requirements of projects such as their budget appraisal, expected turnover, and risk assessment for determining the benefits and costs of the project. Asse...make investment decisionsmake investment decisionsDetermine whether to buy or sell financial products such as fonds, bonds or stocks in order to enhance profitability and to reach the best performance.