Different Jobs in Finance and Accounting

Different Jobs in Finance and Accounting

A bachelor's degree in finance, accounting, or related field is the minimum academic preparation, but many employers increasingly seek graduates with a master's degree and a strong analytical background.

The continuing need for skilled financial managers will spur average employment growth.

Nature of the Work [About this section] Top

Almost every firm, government agency, and organization has one or more financial managers who oversee the preparation of financial reports, direct investment activities, and implement cash management strategies. As computers are increasingly used to record and organize data, many financial managers are spending more time developing strategies and implementing the long-term goals of their organization.

The duties of financial managers vary with their specific titles, which include chief financial officer, vice president of finance, controller, treasurer, credit manager, and cash manager. Chief financial officers (CFOs), for example, are the top financial executives of an organization. They oversee all financial and accounting functions and formulate and administer the organization's overall financial plans and policies. In small firms, CFOs usually handle all financial management functions. In large firms, they direct these activities through other financial managers who head each financial department.

Controllers direct the preparation of financial reports that summarize and forecast the organization's financial position, such as income statements, balance sheets, and analysis of future earnings or expenses. Controllers are also in charge of preparing special reports required by regulatory authorities. Often, controllers oversee the accounting, audit, and budget departments. Treasurers and finance officers direct the organization's financial goals, objectives, and budgets. They oversee the investment of funds and manage associated risks, supervise cash management activities, execute capital-raising strategies to support a firm's expansion, and deal with mergers and acquisitions.

Cash managers monitor and control the flow of cash receipts and disbursements to meet the business and investment needs of the firm. For example, cash flow projections are needed to determine whether loans must be obtained to meet cash requirements or whether surplus cash should be invested in interest-bearing instruments. Risk and insurance managers oversee programs to minimize risks and losses that may arise from financial transactions and business operations undertaken by the institution. They also manage the organization's insurance budget. Credit managers oversee the firm's issuance of credit. They establish credit rating criteria, determine credit ceilings, and monitor the collections of past due accounts. Managers specializing in international finance develop financial and accounting systems for the banking transactions of multinational organizations.