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Summary

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Video transcript available at https://www.youtube.com/watch?v=8ATMziMJ1fw.
Quick Facts: Financial Managers
2022 Median Pay $139,790 per year
$67.21 per hour
Typical Entry-Level Education Bachelor's degree
Work Experience in a Related Occupation 5 years or more
On-the-job Training None
Number of Jobs, 2022 792,600
Job Outlook, 2022-32 16% (Much faster than average)
Employment Change, 2022-32 126,600

What Financial Managers Do

Financial managers create financial reports, direct investment activities, and develop plans for the long-term financial goals of their organization.

Work Environment

Financial managers work in many industries, including banks, investment firms, and insurance companies. Most financial managers work full time, and some work more than 40 hours per week.

How to Become a Financial Manager

Financial managers typically need a bachelor’s degree and 5 years or more of experience in another business or financial occupation, such as accountant, securities sales agent, or financial analyst.

Pay

The median annual wage for financial managers was $139,790 in May 2022.

Job Outlook

Employment of financial managers is projected to grow 16 percent from 2022 to 2032, much faster than the average for all occupations.

About 69,600 openings for financial managers are projected each year, on average, over the decade. Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.

State & Area Data

Explore resources for employment and wages by state and area for financial managers.

Similar Occupations

Compare the job duties, education, job growth, and pay of financial managers with similar occupations.

More Information, Including Links to O*NET

Learn more about financial managers by visiting additional resources, including O*NET, a source on key characteristics of workers and occupations.

What Financial Managers Do About this section

Financial managers
Financial managers perform data analysis and advise senior managers on profit-maximizing ideas.

Financial managers are responsible for the financial health of an organization. They create financial reports, direct investment activities, and develop plans for the long-term financial goals of their organization.

Duties

Financial managers typically do the following:

  • Prepare financial statements, business activity reports, and forecasts
  • Monitor financial details to ensure that legal requirements are met
  • Supervise employees who do financial reporting and budgeting
  • Review financial reports and seek ways to reduce costs
  • Analyze market trends to maximize profits and find expansion opportunities
  • Help management make financial decisions

Financial managers spend much of their time analyzing data and advising senior managers on ways to maximize profits. They often work on teams, acting as advisors to top executives.

Financial managers must have knowledge of the topics, tax laws, and regulations that are specific to their organization or industry. For example, government financial managers must be experts on appropriations and budgeting processes; healthcare financial managers must understand billing, reimbursement, and other business matters related to healthcare.

The following are examples of types of financial managers:

Controllers direct the preparation of financial reports that summarize and forecast an organization’s financial position. These reports may include income statements, balance sheets, and analyses of future earnings or expenses. Controllers also are in charge of preparing reports required by governmental agencies that regulate businesses. Often, controllers oversee the accounting, audit, and budget departments of their organization.

Treasurers and finance officers direct an organization’s budgets to meet its financial goals. They oversee investments and other plans to raise capital, such as issuing stocks or bonds, to support their organization’s growth. They also develop financial plans for mergers (two companies joining together) and acquisitions (one company buying another).

Credit managers oversee an organization’s credit business. They set credit-rating standards, determine credit limits, and monitor the collections of past-due accounts.

Cash managers monitor and control the flow of money into and out of an organization to meet business and investment needs. For example, they must project whether the organization will have a shortage or surplus of cash.

Risk managers use strategies to limit or offset an organization’s chance of financial loss or exposure to financial uncertainty. Among the risks they try to limit are those arising from currency or commodity price changes.

Insurance managers decide how to limit an organization’s losses by protecting against risks, such as for disability payments to an employee who gets hurt on the job or for costs imposed by a lawsuit against the organization.

Work Environment About this section

Financial managers
Financial managers work closely with top managers and with departments that develop the data that financial managers need.

Financial managers held about 792,600 jobs in 2022. The largest employers of financial managers were as follows:

Finance and insurance 30%
Professional, scientific, and technical services 14
Management of companies and enterprises 10
Government 6
Manufacturing 6

Financial managers work closely with top executives and with departments that develop data needed for analysis.

Work Schedules

Most financial managers work full time, and some work more than 40 hours per week.

How to Become a Financial Manager About this section

Financial managers
Financial managers usually have experience in another business or financial occupation such as a loan officer, accountant, auditor, securities sales agent, or financial analyst.

Financial managers typically need a bachelor’s degree and 5 years or more of experience in another business or financial occupation, such as an accountant, securities sales agent, or financial analyst.

Education

Financial managers typically need at least a bachelor's degree in business, economics, or a related field. These disciplines help students learn analytical skills and methods.

Licenses, Certifications, and Registrations

Although it is not required, professional certification indicates competence for financial managers who have it. The Association of Government Accountants (AGA) offers the Certified Government Financial Manager (CGFM) designation to financial managers working with federal, state, or local government. To earn this certification, candidates must have a bachelor’s degree from an accredited college or university, pass examinations, and have professional-level experience in government financial management. To keep the certification, CGFMs must complete continuing professional education.

The CFA Institute confers the Chartered Financial Analyst (CFA) certification to investment professionals who have at least a bachelor’s degree or 4 years of work experience, or a combination of experience and education, and who pass three exams. The Association for Financial Professionals confers the Certified Treasury Professional (CTP) credential to those who have at least 2 years of relevant experience or 1 year of experience and a graduate degree in business, finance, or a related field. This association also confers the Certified Corporate Financial Planning Analysis Professional (FP&A) credential to those who have a bachelor’s degree or who are currently enrolled in an undergraduate program with a finance-related major and will graduate within 2 years. Both credentials require passing an exam.

Certified public accountants (CPAs) are licensed by their state’s board of accountancy and must pass an exam administered by the American Institute of Certified Public Accountants (AICPA).

Work Experience in a Related Occupation

Financial managers usually have experience in another business or financial occupation. For example, they may have worked as a loan officer, accountant, securities sales agent, or financial analyst.

In some cases, companies provide management training to help prepare motivated, skilled financial workers to become managers.

Advancement

Experienced financial managers may advance to become chief financial officers (CFOs). These executives are responsible for the accuracy of an organization’s financial reporting.

Important Qualities

Analytical skills. To assist executives in making decisions, financial managers need to evaluate data and information that affects their organization.

Communication skills. Financial managers must be able to explain and justify complex financial transactions.

Detail oriented. In preparing and analyzing reports, such as balance sheets and income statements, financial managers must be precise and attentive to their work in order to avoid errors.

Math skills. Financial managers need strong skills in certain branches of mathematics, including algebra. Ability to understand international finance and complex financial documents also is important.

Organizational skills. Because financial managers deal with a range of information and documents, they must have structures in place to be effective in their work.

Pay About this section

Financial Managers

Median annual wages, May 2022

Financial managers

$139,790

Operations specialties managers

$130,950

Total, all occupations

$46,310

 

The median annual wage for financial managers was $139,790 in May 2022. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $79,050, and the highest 10 percent earned more than $239,200.

In May 2022, the median annual wages for financial managers in the top industries in which they worked were as follows:

Management of companies and enterprises $164,660
Professional, scientific, and technical services 164,490
Manufacturing 142,120
Finance and insurance 139,980
Government 124,400

Most financial managers work full time, and some work more than 40 hours per week.

Job Outlook About this section

Financial Managers

Percent change in employment, projected 2022-32

Financial managers

16%

Operations specialties managers

11%

Total, all occupations

3%

 

Employment of financial managers is projected to grow 16 percent from 2022 to 2032, much faster than the average for all occupations.

About 69,600 openings for financial managers are projected each year, on average, over the decade. Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.

Employment

Services provided by financial managers, such as planning, directing, and coordinating investments, are likely to stay in demand as the economy grows. In addition, several specialties within financial management, particularly cash management and risk management, are expected to be in high demand over the decade.

Companies, particularly those with operations in foreign countries, have accumulated more cash on their balance sheets in recent years. As globalization continues, this trend is likely to persist. This practice should lead to demand for financial managers, as companies will need expertise in managing cash.

There has been an increased emphasis on risk management within the financial industry, and this trend is expected to continue. Banking institutions are expected to emphasize stability and managing risk over profits. This emphasis is expected to lead to employment growth for risk managers.

Employment projections data for financial managers, 2022-32
Occupational Title SOC Code Employment, 2022 Projected Employment, 2032 Change, 2022-32 Employment by Industry
Percent Numeric

SOURCE: U.S. Bureau of Labor Statistics, Employment Projections program

Financial managers

11-3031 792,600 919,200 16 126,600 Get data

State & Area Data About this section

Occupational Employment and Wage Statistics (OEWS)

The Occupational Employment and Wage Statistics (OEWS) program produces employment and wage estimates annually for over 800 occupations. These estimates are available for the nation as a whole, for individual states, and for metropolitan and nonmetropolitan areas. The link(s) below go to OEWS data maps for employment and wages by state and area.

Projections Central

Occupational employment projections are developed for all states by Labor Market Information (LMI) or individual state Employment Projections offices. All state projections data are available at www.projectionscentral.org. Information on this site allows projected employment growth for an occupation to be compared among states or to be compared within one state. In addition, states may produce projections for areas; there are links to each state’s websites where these data may be retrieved.

CareerOneStop

CareerOneStop includes hundreds of occupational profiles with data available by state and metro area. There are links in the left-hand side menu to compare occupational employment by state and occupational wages by local area or metro area. There is also a salary info tool to search for wages by zip code.

Similar Occupations About this section

This table shows a list of occupations with job duties that are similar to those of financial managers.

Occupation Job Duties ENTRY-LEVEL EDUCATION Help on Entry-Level Education 2022 MEDIAN PAY Help on Median Pay
Accountants and auditors Accountants and Auditors

Accountants and auditors prepare and examine financial records.

Bachelor's degree $78,000
Budget analysts Budget Analysts

Budget analysts help public and private organizations plan their finances.

Bachelor's degree $82,260
Financial analysts Financial Analysts

Financial analysts guide businesses and individuals in decisions about expending money to attain profit.

Bachelor's degree $96,220
Insurance sales agents Insurance Sales Agents

Insurance sales agents contact potential customers and sell one or more types of insurance.

High school diploma or equivalent $57,860
Insurance underwriters Insurance Underwriters

Insurance underwriters evaluate insurance applications and decide whether to approve them.

Bachelor's degree $76,230
Loan officers Loan Officers

Loan officers evaluate, authorize, or recommend approval of loan applications.

Bachelor's degree $65,740
Personal financial advisors Personal Financial Advisors

Personal financial advisors provide advice to help individuals manage their money and plan for their financial future.

Bachelor's degree $95,390

Contacts for More Information About this section

For more information about financial managers, including certification, visit

Global Academy of Finance and Management

For information about the Certified Government Financial Manager (CGFM) designation, visit

Association of Government Accountants

For information about the Certified Treasury Professional and the Financial Planning and Analysis Professional designations, visit

Association for Financial Professionals

For information about the Chartered Financial Analyst program, visit

CFA Institute

For more information about the certified public accountant designation, visit

American Institute of Certified Public Accountants (AICPA)

CareerOneStop

For a career video on financial managers, visit

Financial Managers, Branch or Department

For a career video on treasurers and controllers, visit

Treasurers and Controllers

O*NET

Financial Managers

Investment Fund Managers

Treasurers and Controllers

Suggested citation:

Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Financial Managers,
at https://www.bls.gov/ooh/management/financial-managers.htm (visited February 23, 2024).

Last Modified Date: Wednesday, September 6, 2023

What They Do

The What They Do tab describes the typical duties and responsibilities of workers in the occupation, including what tools and equipment they use and how closely they are supervised. This tab also covers different types of occupational specialties.

Work Environment

The Work Environment tab includes the number of jobs held in the occupation and describes the workplace, the level of physical activity expected, and typical hours worked. It may also discuss the major industries that employed the occupation. This tab may also describe opportunities for part-time work, the amount and type of travel required, any safety equipment that is used, and the risk of injury that workers may face.

How to Become One

The How to Become One tab describes how to prepare for a job in the occupation. This tab can include information on education, training, work experience, licensing and certification, and important qualities that are required or helpful for entering or working in the occupation.

Pay

The Pay tab describes typical earnings and how workers in the occupation are compensated—annual salaries, hourly wages, commissions, tips, or bonuses. Within every occupation, earnings vary by experience, responsibility, performance, tenure, and geographic area. For most profiles, this tab has a table with wages in the major industries employing the occupation. It does not include pay for self-employed workers, agriculture workers, or workers in private households because these data are not collected by the Occupational Employment and Wage Statistics (OEWS) survey, the source of BLS wage data in the OOH.

State & Area Data

The State and Area Data tab provides links to state and area occupational data from the Occupational Employment and Wage Statistics (OEWS) program, state projections data from Projections Central, and occupational information from the Department of Labor's CareerOneStop.

Job Outlook

The Job Outlook tab describes the factors that affect employment growth or decline in the occupation, and in some instances, describes the relationship between the number of job seekers and the number of job openings.

Similar Occupations

The Similar Occupations tab describes occupations that share similar duties, skills, interests, education, or training with the occupation covered in the profile.

Contacts for More Information

The More Information tab provides the Internet addresses of associations, government agencies, unions, and other organizations that can provide additional information on the occupation. This tab also includes links to relevant occupational information from the Occupational Information Network (O*NET).

2022 Median Pay

The wage at which half of the workers in the occupation earned more than that amount and half earned less. Median wage data are from the BLS Occupational Employment and Wage Statistics survey. In May 2022, the median annual wage for all workers was $46,310.

On-the-job Training

Additional training needed (postemployment) to attain competency in the skills needed in this occupation.

Entry-level Education

Typical level of education that most workers need to enter this occupation.

Work experience in a related occupation

Work experience that is commonly considered necessary by employers, or is a commonly accepted substitute for more formal types of training or education.

Number of Jobs, 2022

The employment, or size, of this occupation in 2022, which is the base year of the 2022-32 employment projections.

Job Outlook, 2022-32

The projected percent change in employment from 2022 to 2032. The average growth rate for all occupations is 3 percent.

Employment Change, 2022-32

The projected numeric change in employment from 2022 to 2032.

Entry-level Education

Typical level of education that most workers need to enter this occupation.

On-the-job Training

Additional training needed (postemployment) to attain competency in the skills needed in this occupation.

Employment Change, projected 2022-32

The projected numeric change in employment from 2022 to 2032.

Growth Rate (Projected)

The percent change of employment for each occupation from 2022 to 2032.

Projected Number of New Jobs

The projected numeric change in employment from 2022 to 2032.

Projected Growth Rate

The projected percent change in employment from 2022 to 2032.

2022 Median Pay

The wage at which half of the workers in the occupation earned more than that amount and half earned less. Median wage data are from the BLS Occupational Employment and Wage Statistics survey. In May 2022, the median annual wage for all workers was $46,310.