Financial management implies preparation for the succeeding of a individual or a business enterprise to guarantee a positive cash flow. It includes the administration and maintenance of financial assets. As well, financial management covers the method of identifying and managing risks

A lot of experts concern to financial management as the skill of profit management. The basic custom of these condition is in the global of financing business activities. All the same, financial management is crucial at all levels of human existence as every entity needs to look after its finances.

• Financial Management: Levels

Broadly speaking, the process of financial management takes place at two levels. At the individual level, financial management involves tailoring expenses according to the financial resources of an individual. Individuals with surplus cash or access to funding invest their money to make up for the impact of taxation and inflation. Else, they spend it on discretionary items. They need to be able to take the financial decisions that are intended to benefit them in the long run and help them achieve their financial goals.

From an organizational point of view, the process of financial management is associated with financial planning and financial control. Financial planning seeks to quantify various financial resources available and plan the size and timing of expenditures. Financial control refers to monitoring cash flow. Inflow is the amount of money coming into a particular company, while outflow is a record of the expenditure being made by the company. Managing this movement of funds in relation to the budget is essential for a business.

At the corporate level, the main aim of the process of managing finances is to achieve the various goals a company sets at a given point of time. Businesses also seek to generate substantial amounts of profits, following a particular set of financial processes.

Financial managers aim to boost the levels of resources at their disposal. Besides, they control the functioning on money put in by external investors. Providing investors with sufficient amount of returns on their investments is one of the goals that every company tries to achieve. Efficient financial management ensures that this becomes possible.

Strong financial management in the business arena requires managers to be able to :

1. Interpret financial reports including income statements, Profits and Loss or P&L, cash flow statements and balance sheet statements
2. Improve the allocation of working capital within business operations
3. Review and fine tune financial budgeting, and revenue and cost forecasting
4. Look at the funding options for business expansion, including both long and short term financing
5. Review the financial health of the company or business unit using ratio analyses, such as the gearing ratio, profit per employee and weighted cost of capital
6. Understand the various techniques using in project and asset valuations
7. Apply critical financial decision making techniques to assess whether to proceed with an investment
8. Understand valuations frameworks for businesses, portfolios and intangible assets

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How do we do that? Well, people always say that a good education opens doors. A finance career works the same way given that there are different companies that you can work in after graduation which is why you should do some research first to find out what aspects of the industry interests you the most.

Just to give you an idea, some of the things you could find yourself in after graduation could be commercial banking, commercial lending, corporate finance, financial planning, investment banking, private equity and sales and trading.

When you are able to do some research in each of them, it will be easy for you to develop the skills needed to excel in this in the future.

A career in finance can happen if you graduate with a degree in math, economics or statistics. But since the market is very competitive, you have to make yourself shine by earning an MBA degree years later. You don’t have to get one after a couple of years of work since there are some individuals who are studying in their 40’s.

Apart from that, it is best to read up journals and participate in conferences and become a member of a professional organization. You have to be informed of the latest trends and build up your network because that someone you know may get you that job you are looking for.

Two examples of these organizations include the American Bankers Association and the Association for Financial Professionals. They have events scheduled all year round that will allow you meet new people with similar career goals.

For those who don’t have an idea what aspect of financing yet to pursue, this is the time to ask help from one of your professors. Surely, this person can tell you what kind of job is closely related to what was taught in class. With that in your head, it is time to look for companies that engage in exactly that.

While you are still in school, another thing that could help will be to apply as an intern in one of these firms. Some companies will give a salary while other won’t.  If you do well here, they will probably give you an offer even before you graduate or encourage you to work for them full time.

If the company you are looking for doesn’t have any vacancies at the moment, leave your resume or application anyway so that if an opening comes up, someone will give you a call so all you have to do is give it your best during the interview.

At the same time, be active in your school organization because an alumni member may on the lookout for new talents which will be beneficial for the company.

We all need to focus on something so an idea can be turned into a plan and then executed. A career goal in finance is just one example because people with other interests can do the same thing and succeed in whatever endeavor they choose to pursue.

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If you’re already in the industry, then it is possibly the best time to take post graduate courses to increase your chance of landing better opportunities when the finance career employment peak kicks in. And if you’re just entering college, a career in finance may be something that you should really consider.

Before even thinking of a career in finance, the field does require a certain level of skills and knowledge which you can learn. Finance professionals are expected to organize, analyze and interpret numerical and financial data. They are expected to arrive at sound decisions based on the data that they have. They should be meticulous and show attention to details.

It is also expected from them that their oral and written communications skills are beyond average since they will be expected to present data and information to others. Having knowledge of financial and economic history, practices, laws, trends, as well as having economics and accounting background is often an advantage.

In a career in finance, you can either go to private, public or non-profit organizations since all those three needs some levels of financial management and control. Finance professionals often find themselves employed in commercial banking, financial planning, money managing, corporate finance, investment banking, insurance and, of course, in real estate. These are the fields that finance professionals are often in demand.

Commercial banking means having an opportunity to work in the areas of financial management, accountancy and auditing, securities, commodities and financial services sales. There’s also an opportunity to work in the area of financial and credit analysis since commercial banks are there to provide banking services to individuals as well as small and large businesses and organizations.

When you work in commercial banks, you may want to take the opportunity to learn more about businesses. Interacting with bank clients should be taken as an opportunity to build a people network. And because commercial banking is more diverse now that before, you can start as a bank teller and move up in areas like leasing, credit card banking, international finance and trade credits. Once you’re inside the commercial banking system, it would be nice to keep your eyes open for better opportunities within the industry.

If you’re not fond of commercial banks, you might want to look at corporate finance. In this area, part of your responsibilities as a finance professional is to find money for the company, plant for the future, make acquisitions whenever necessary and whenever there’s an opportunity, and help manage the company’s present finance. Fast problem-solving skills will be hand in this area of finance.

The good thing working in corporate finance is that it pays well, you get to travel and meet with lots of people, make business decisions that matters, and can hone your decision making skills.

Other areas where you can grow as finance professional include financial planning which involves helping individuals organize, manage, and plan their financial futures. You are expected to guide clients on their retirement needs, planning for their children’s education, etc. Your knowledge on investments, taxes, and listening skills should be exemplary.

You can also carve your career as a finance professional in the field of insurance. Helping individuals and businesses prepare for emergencies or disasters that would otherwise result to big losses would be the main course of your job.

Investment banking is yet another area where you can be good at. This time, you will be helping companies and even governments issue, purchase or trade securities, manage financial assets, and provide sound financial advice.

You can also be a successful money manager. As money managers you will be holding tocks and bonds for institutional clients. You’re expected to be informed and know how to analyze market trends using either quantitative techniques or simple intuition.

And finally a career on real estate is always something that you might have seen coming as a career in finance professional. You can get employment opportunities in areas like brokerage and leasing, in title insurance, in mortgage banking and even in construction and property management.

Real estate appraisals are also an important aspect of real estate work that you can take full advantage of.

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Some of things that you can get into include actuaries, auditing, banking, chartered accounting, corporate finance, corporate recovery, stock broking and taxation management.

One report shows that employments prospects for these professionals is quite high over the past 5 years and this is expected to continue until after 2010. You will also be handsomely rewarded with a good salary but long hours come with the territory especially when companies and individuals have to file their income taxes and towards the end of the financial year.

Just to give you an idea, newly grades who work in banks earn from $35,000 to $50,000 annually while financial managers earn almost double that amount. Professionals who soon become partners for the bigger firms earn more than $100,000.

But in order for you to get a higher position, you will also need to go back to school. Most financial experts pursue an MBA after a few years in the corporate world. While some return to their employers, others apply elsewhere.

Before you can see yourself up there, you have to work from the bottom going up. While some decide to make it big in Wall Street, you too can also succeed wherever you decide to apply.

The first thing to do is conduct some research. This will make you understand how things work and how news in business affects the industry, the country and the world as a whole.

If you want to get the job, aside from being knowledgeable, you need to have connections that are already there so you are given the position instead of someone else. This means building your network from school and then using it to your advantage.

Associating yourself with those who have done well may give you pointers so you too can be just as successful as them.

But you shouldn’t wait until graduate before you start looking at the various career opportunities in accounting and finance. The best way to get your foot in the door is to apply for a summer position or an internship because most companies hire those who have worked with them for a short period of time compared to those that sent in their resumes. Believe me; you already have an edge right there as you already have an idea about the internal workings of the company.

Just in case the company you worked for does not have an opening right now, you should prepare your resume and yourself for interviews with other companies that do similar activities with what you used to do during your internship.

The average professional who works in either accounting or finance leaves after 2 years. They may apply for reassignment to another department or find employment doing something else. When this happens, there are job openings around for fresh graduates as well as those who already have experience in this industry.

Indeed, there are career opportunities in accounting and finance. You just have to build your network and get it.

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