What Is the Average Salary for a Finance Manager?

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Key Takeaways:

  • Finance managers earn an average salary of $120,000 annually, with variations depending on location, industry, and experience level.
  • High demand for finance managers in major cities can lead to higher salaries and more career advancement opportunities.
  • Advanced degrees and certifications can significantly boost earning potential and career progression for finance managers in competitive job markets.

The Bureau of Labor Statistics (BLS) states that the average salary for a finance manager is approximately $117,990 per year, which equates to $56.73 per hour. Keep reading to learn the duties of finance managers in various sectors and how to become a finance manager and earn a higher salary. If you are aiming for a finance manager career, getting a master’s in finance is going to be worth the time and effort.

Finance Manager – Energy Sector

Finance managers who work in the energy sector will conduct and document complex financial, economic and statistical reports. They gather financial data in order to extract trends and define relevant recommendations. They interpret data for the purpose of determining past financial performance in order to project financial probabilities. The information they analyze and summarize is provided to management and the board of directors.

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These finance managers develop and monitor financial plans in conformance with long-term goals and corporate objectives. They assist in the analysis of potential acquisitions, financing alternatives and capital appropriation opportunities. They may prepare short- and long-term cash forecasts, assist with cash management functions and classify financial events in accordance with generally accepted accounting principles (GAAP). They must have a strong background in statistics, databases and information systems.

Finance Manager – Online Commerce

Finance managers who work in the online commerce business may be employed by major global business players like eBay and Amazon. These finance managers have a strong technology background that they use to support business objectives and financial operations. They provide excellent finance support and business insights through monitoring and forecasting financial models and business trends. Finance managers must be familiar with online economic concepts, trends and theories.

They are key members of financial teams who conduct risk, strategic and scenario planning activities. They provided detailed budgeting, forecasting and analysis reports of operational expenses and their primary drivers. They regularly recommend how to take advantage of opportunities to optimize operational expenses. They support the company’s executives by providing insights about expense trends and facilitating decision making.

What Education is Required?

Finance managers will have a degree in finance, accounting or business administration. The first two degrees are preferred because they will develop a deep understanding of financial markets, economic issues, financial institution operations and management. For example, a major in financial management will prepare graduates for careers in banking, insurance, real estate, financial planning and corporate management. A Bachelor of Science in financial management will give students the necessary skills to gather, analyze and communicate financial data.

These programs teach students the financial language and knowledge needed to assess, measure and report on the profitability and financial health of organizations. Government agencies employ finance graduates to handle local, regional and national budgets. Many colleges and universities offer specializations within financial management. This includes financial planning, which focuses on how to meet goals through the use and management of financial resources. These specializations prepare graduates to take the certified financial planner (CFP) exam.

Alternatively, some programs will offer specializations in commercial real estate, corporate finance, capital investment and financial services. The average salary for a finance manager will ultimately depend on the education, sector and target company.