What is financial management? A financial manager is a person who has completed a bachelors degree in business administration, accounting or a similar discipline, and has experience managing people and money. Financial management can also be defined as the department or role in an organization that is primarily concerned with finances, expenses, money and credit, so the “personage” will have the ability to take care of the business’s assets, liabilities and payroll. Financial management will usually require extensive training, as well as specific knowledge of complex computer programs and investing. If you are interested in this position then you may wish to get an associate’s degree, certificate program or bachelor’s degree in finance and accounting.
It is very important to remember that financial management is not the same thing as financial accounting. There is a lot of overlap between these two disciplines, but not enough to cause confusion. For example, bookkeeping is required when someone sells a company’s stock, receives payment, or otherwise makes changes in ownership. However, financial management is concerned primarily with cash flow and asset prices. It does not encompass all of the concepts of accounting, such as profit and loss, depreciation and financing.
How do financial institutions employ financial managers? They typically hire financial managers who have backgrounds in finance and accounting. Most financial institutions have their own internal departments of finance and accounting, although larger financial institutions often hire outside companies for financial management needs. Some large banks and large financial institutions contract out the financial management of their businesses in order to save money for the bank. Other large financial institutions hire investment managers and financial planning consultants to provide financial advice to small businesses. The most popular positions in financial management are CEO, CFO, COO and trader.