How do I become a financial manager?

financial management

Financial management (in English: Financial Management) is the implementation of organization, planning, control, and direction on all financial activities of the facility, and financial management is defined as an activity that depends on the financial planning used in business; In order to manage and control it. Another definition of financial management is management that relies on the application of administrative principles, is keen to collect money and use it profitably, plans future activities, and controls all applications based on cost accounting and financial accounting.

Chief Financial Officer

The financial manager (in English: Financial Manager) is responsible for all the financial affairs and work of an establishment. The financial manager is defined as a person who follows up the company’s financial operations, is interested in preparing financial reports, following up on investment activities, and developing plans and strategies that contribute to achieving the company’s long-term financial goals. the long.

How does a person become a financial manager?

The financial manager contributes to developing financial management in various institutions, whether in the public or private sectors. Many individuals seek to work in the field of financial management, but in order for a person to become a financial manager, he must apply a set of procedures, which are:

• Obtaining an academic degree: It is obtaining bachelor's and master's degrees or one of them in the following fields: finance (finance), business administration, accounting, or any other specializations that depend on the study of business or administration. The finance specialization in university studies often covers all knowledge related to financial planning and evaluation. Investment portfolios and the study of securities. Other majors such as accounting and business administration are also interested in teaching similar topics, such as principles of economics. Employers prefer financial managers with advanced education. Obtaining a postgraduate certificate contributes to increasing job opportunities and improving career development. Examples of postgraduate certificates include a master’s degree in finance, economics, or business administration.
• Get work experience: It is one of the necessary and important matters for the financial manager. His usual career begins by working in jobs related to financial management, such as financial analysis and accounting, and companies usually look for financial managers with appropriate experience. Especially related to business management and financial finance.
• Obtaining professional certificates: It is the financial manager obtaining certificates that represent his level of competence, and the most important of these certificates is the financial analyst certificate, known in English as (Chartered Financial Analyst); It is expressed by the abbreviation (CFA).
• Excellence with the right skills: It is a set of basic skills that a financial manager must excel at. The most important of these skills are critical and analytical thinking, applying oral and written communication, possessing advanced mathematics skills, and the ability to solve problems in the work environment.

Duties of the financial manager

The work of the CFO in various companies depends on implementing a set of tasks and responsibilities, which are:

• Ensure the provision and interpretation of financial information.
• Monitoring all cash flows, contributing to anticipating future trends, analyzing changes and providing advice.
• Preparing long-term strategic operation plans.
• Reporting influences affecting the nature of work performance.
• Interest in studying market trends and analyzing competitive establishments.
• Ensuring the development and improvement of the mechanisms applied in financial management; Which contributes to reducing risks.
• Follow up on appropriate opportunities to reduce financial costs.
• Interest in managing financial accounting systems.
• Communicate with all auditors; In order to monitor the company's annual financial situation.
• Developing and improving external relations by activating the role of communications with bankers and financial auditors.
• Managing the financial budget and submitting appropriate financial reports.
• Searching for new sources of financial financing; With the aim of facilitating the payment of debts owed by the company.
• Follow up on all changes to financial legislation and regulations.

Financial management objectives

Financial management seeks to achieve many beneficial goals for the owners, managers, employees, and customers of various establishments. Below is information about the most important of these goals:

• Increase profits: It is to raise the value of the company's revenues and profits; By seeking to increase its sales or other activities; By using the most successful plans and opportunities available to increase profits.
• Reduce costs: It is relying on equity and capital funds; With the aim of implementing all appropriate steps to reduce and limit the costs incurred on the company’s capital.
• Reducing risk: It is the role of financial management in reducing risk when its percentage increases. Because it may affect the company’s existence and continuity.
• Increase the long-term value of the company: It is to increase the value of the company in the long term; By achieving more profits in the shortest time.

Financial management jobs

The work of financial management in various companies is related to the implementation of a group of functions, including:

• Liquidity: It is an indicator of the amount of money that an establishment owns and uses to pay its short-term obligations. It is possible to ascertain the nature of liquidity by relying on three considerations:
  • Cash flow forecasting: It is achieving a balance between incoming and outgoing cash flows. In order to reach liquidity goals.
  • Raising money: It is supporting the increase of funds and identifying needs through the financial manager.
  • Managing internal flows of funds: is maintaining financial accounts in more than one bank. In order to maintain a high degree of liquidity.
• Profitability: It is the economic condition associated with achieving financial profits. When applying profitability, the following matters must be taken into account:
  • Pricing: It is one of the important policies in companies. It is important in determining the level of sales in the company.
  • Predicting future profits: is predicting and evaluating estimated profits. With the aim of enhancing the company's presence and ensuring a good level of profit.
  • Measuring capital costs: It is the method used to measure the cost of capital. Because the company's profit is linked to it, each financing source has its own cost of capital.
• Management: It is the financial management's duty to preserve the sources of assets. Because it plays an important role in financial management; The financial manager must ensure that the sources of assets are available to operate the company permanently.