Detailed Guide forFinancial Managers in California
May also be called: Account Managers; Banking Center Managers; Consumer Loan Managers; Finance Directors; Financial Administrators; Fiscal Managers; and Investment Officers
Specialties within this occupation include: Cash Managers; Controllers; Credit Managers; Risk and Insurance Managers; Treasurers and Finance Officers
What Would I Do?
Financial Managers oversee the preparation of financial reports, direct investment activities, and implement cash management policies. They also coordinate the financial transactions of employees in a branch or office that include bank branches, brokerage firms, or credit departments.
Financial Managers respond to executive management requests for financial information including special reports, analyses, and ad hoc requests. They also solve reporting or compliance issues. Financial Managers provide research related to business sectors, financial and expense performance, rate of return, depreciation, working capital, and investment. Managers analyze financial data, market conditions, and operational reports or records. They conduct financial investigations and identify financial risks to the company.
Financial Managers also develop business improvement proposals, lead special business projects, forecast financial data for programs or contracts, and participate in long-range strategic business planning. They also supervise the work of employees to ensure adherence to quality standards, deadlines, and proper procedures. Additional responsibilities include coaching and developing new employees.
Examples of technology used in this occupation include accounting, financial analysis, presentation, and spreadsheet software.
Numerous sub-specialty occupations fall under the title of Financial Manager:
Cash Managers monitor the flow of cash receipts and disbursements to meet the business and investment needs of the firm.
Controllers direct the preparation of financial reports that summarize and forecast the organization’s financial position. Examples of these reports include income statements, balance sheets, and analyses of future earnings or expenses. Often, controllers oversee the accounting, audit, and budget departments.
Credit Managers oversee the company's issuance of credit, establish credit rating criteria, and monitor the collections of past-due accounts.
Risk and Insurance Managers administer programs to minimize risks and losses that might arise from financial dealings and business operations.
Treasurers and Finance Officers oversee the investment of funds, manage associated risks, supervise cash management activities, execute capital-raising strategies to support a firm’s expansion, and deal with mergers and acquisitions.
Important Tasks and Related Skills
Each task below is matched to a sample skill required to carry out the task.
|View the skill definitions|
|Task||Skill Used in this Task|
|Establish and maintain relationships with individual and business customers, and provide assistance with problems these customers may encounter.||Service Orientation|
|Examine, evaluate, and process loan applications.||Judgment and Decision Making|
|Plan, direct, and coordinate the activities of workers in branches, offices, or departments of such establishments as branch banks, brokerage firms, risk and insurance departments, or credit departments.||Management of Personnel Resources|
|Oversee the flow of cash and financial instruments.||Mathematics|
|Recruit staff members and oversee training programs.||Administration and Management|
|Network within communities to find and attract new business.||Sales and Marketing|
|Approve, reject, or coordinate the approval or rejection of lines of credit and commercial, real estate, and personal loans.||Complex Problem Solving|
|Prepare financial and regulatory reports required by laws, regulations, and boards of directors.||Economics and Accounting|
|Establish procedures for custody and control of assets, records, loan collateral, and securities to ensure safekeeping.||Critical Thinking|
|Review collection reports to determine the status of collections and the amounts of outstanding balances.||Monitoring|
Below is a definition for each skill.
|View the tasks to skills list|
|Service Orientation||Actively looking for ways to help people.|
|Judgment and Decision Making||Considering the relative costs and benefits of potential actions to choose the most appropriate one.|
|Management of Personnel Resources||Motivating, developing, and directing people as they work, identifying the best people for the job.|
|Mathematics||Using mathematics to solve problems.|
|Administration and Management||Knowledge of business and management principles involved in strategic planning, resource allocation, human resources modeling, leadership technique, production methods, and coordination of people and resources.|
|Sales and Marketing||Knowledge of principles and methods for showing, promoting, and selling products or services. This includes marketing strategy and tactics, product demonstration, sales techniques, and sales control systems.|
|Complex Problem Solving||Identifying complex problems and reviewing related information to develop and evaluate options and implement solutions.|
|Economics and Accounting||Knowledge of economic and accounting principles and practices, the financial markets, banking and the analysis and reporting of financial data.|
|Critical Thinking||Using logic and reasoning to identify the strengths and weaknesses of alternative solutions, conclusions or approaches to problems.|
|Monitoring||Monitoring/Assessing performance of yourself, other individuals, or organizations to make improvements or take corrective action.|
Financial Managers work in comfortable climate-controlled offices located close to the offices of the top managers and to the departments that develop financial data. They typically work long hours, often up to 50 or 60 per week. Financial Managers generally are required to attend meetings of financial and economic associations and may travel to visit subsidiary firms or to meet with customers.
Financial Managers are not typically represented by unions.
Will This Job Fit Me?
Financial management occupations will appeal to individuals who enjoy starting up and carrying out projects. These occupations often involve analyzing information and using mathematics and logic to solve work-related problems. In addition, financial occupations sometimes require risk taking and often deal with business issues. Financial Managers should have excellent communication skills as well as self-confidence to explain and promote financial concepts to clients and coworkers.
What Wages and Benefits Can I Expect?
Salary levels vary depending on the type of industry and location. Large organizations often pay higher salaries than small ones. Many Financial Managers are paid bonuses in addition to their regular salary.
The median wage in 2016 for Financial Managers in California is $132,575 annually, or $63.73 hourly. The median is the point at which half of the workers earn more and half earn less.
Benefit packages vary widely from company to company. Financial Managers generally receive health and dental insurance, vacation, holidays, sick leave, and pension plans. Deferred compensation in the form of stock options is becoming more common, especially for senior-level executives. Self-employed consultants are responsible for purchasing their own benefits.
What Do Local Employers Say About Benefits? Of the 520 employers in California, almost all provide medical insurance and vacation and dental insurance, and most provide sick leave, life insurance, vision insurance, and retirement plan benefits to Financial Managers who work full-time.
|Percent of Employers Who Provide|
Specific Benefits by Time Base
|Paid Time Off Bank||21%||1%|
Of the 491 employers surveyed who responded in California, who provides medical benefits, almost all reported that they pay half or more of the cost of medical insurance for full-time, and most reported that they pay half or more of the cost of medical insurance for part-time Financial Managers.
|Percent of Employers Who Paid Medical |
Insurance by Portion Paid by Time Base
|Portion Paid by Employer:||Full-Time||Part-Time|
|Half or more||48%||50%|
|Less than Half||14%||27%|
What is the Job Outlook?
As with other managerial occupations, job seekers are likely to face competition because the number of job openings is expected to be less than the number of applicants. Candidates with expertise in accounting and finance, particularly those with a master’s degree and certification, should enjoy better job prospects.
As banks expand the range of products and services they offer to include insurance and investment products, branch managers with knowledge in these areas will be needed. As a result, candidates who are licensed to sell insurance or securities will have more favorable prospects.
Projections of Employment
In California, the number of Financial Managers is expected to grow at an average rate compared with the total for all occupations. Jobs for Financial Managers are expected to increase by 13.6 percent, or 10,100 jobs between 2012 and 2022.
|Estimated Employment and Projected Growth|
(Estimated Year-Projected Year)
Due to Net
|View Projected Growth for All Areas|
Annual Job Openings
In California, an average of 1,000 new job openings per year is expected for Financial Managers, plus an additional 1,390 job openings due to net replacement needs, resulting in a total of 2,400 job openings.
|Estimated Average Annual Job Openings|
|Jobs From Growth||Jobs Due to|
|View Data for All Areas|
How Do I Qualify?
Education, Training, and Other Requirements
A bachelor's degree in finance, accounting, economics, or business administration is usually the minimum entrance requirement for Financial Managers. However, employers increasingly prefer to hire candidates with a master's degree.
Many employers prefer to hire experienced candidates. Experience may be more important than formal education for some industries such as banking. Banks typically fill branch manager positions by promoting experienced loan officers and other professionals who excel at their jobs. Other Financial Managers may enter the profession through formal management training programs offered by the company.
Early Career Planning
High school preparation courses in mathematics, accounting, computer technology, economics, language arts, general business, marketing, and public speaking are helpful for students interested in financial management occupations.
Work Study Programs
Initial preparation for entry-level financial occupations are available through Regional Occupational Programs (ROP). Classes include banking and financial services, business finance and accounting, and financial planning. To find an ROP program near you, go to the California Association of Regional Occupational Centers and Programs Web site.
Continuing education is generally required to maintain certification. Also, continuing education helps Financial Managers to keep abreast with the complexities of global trade and legislative changes pertaining to financial products. Qualifying continuing education activities include completion of formal training, or attendance at conferences and seminars.
Certification is voluntary, however, it is valuable in that it broadens skills and enhances employment opportunities. Numerous associations offer professional certification programs. For example, the Association for Financial Professionals awards the Certified Treasury Professional certification to individuals who pass an exam and who have two years of experience in finance or accounting. The Chartered Financial Analyst Institute grants the Chartered Financial Analyst certification to investment professionals possessing a bachelor's degree who successfully pass a series of three examinations. The Institute of Certified Management Accountants confers the Certified Management Accountant designation to members with a bachelor's degree who successfully pass a two-part exam. For more information, go to the U.S. Department of Labor's Career InfoNet Web site and scroll down to "Career Tools." Click on "Certification Finder" and follow the instructions to locate certification programs.
Where Can I Find Training?
There are two ways to search for training information:
- Search by Field of Study to find what programs are available and what schools offer those programs. You may use keywords such as: Accounting, Banking, Business, Credit, Finance, Insurance, Investment, and Securities.
- Search by Training Provider to find schools by name, type of school, or location.
Contact the schools you are interested in to learn about the classes available, tuition and fees, and any prerequisite course work.
Where Would I Work?
Approximately five percent of Financial Managers are self-employed nationwide. Generally, this occupation is employed across many industries. The largest industries employing Financial Managers are as follows:
|Industry Title||Percent of Total Employment for Occupation in California|
|Depository Credit Intermediation ||10.2%|
|Management of Companies and Enterprises ||9.2%|
|Accounting and Bookkeeping Services ||8.5%|
|General Medical and Surgical Hospitals ||4.3%|
|Local Government ||3.1%|
What Employers Say...
The Employment Development Department surveyed 520 employers in California which employ 2,647 Financial Managers. Here's what they had to say:
About Full-Time/Part-Time: Almost All of these firms employ full-time and few employ part-time Financial Managers.
About Work Experience: Of the 520 employers surveyed in California, almost all require new hires to have prior work experience as Financial Managers. In the table below, percentages may not add to 100% since employers may select more than one time period.
|How Much Work Experience|
Do Employers Require?
|More than 5 years ||40%|
|25 to 60 months ||34%|
|13 to 24 months ||17%|
|1 to 12 months ||10%|
About Recruitment: Of the 520 employers surveyed in California, most indicate it is moderately difficult to find applicants with experience who meet their minimum hiring requirements, while many indicate it is hard to find applicants without previous experience who meet their minimum hiring requirements to fill vacancies for Financial Managers.
About Hiring: Of the 520 employers surveyed in California, almost all expect the number of Financial Managers they employ to remain stable during the coming year.
|Expect Employment to Increase ||4%|
|Expect Employment to Remain Stable ||88%|
|Expect Employment to Decline ||8%|
About Vacancies: Of the 520 employers surveyed in California, 30 percent hired Financial Managers during the past year. Of the hiring firms, 90 percent filled existing vacancies, 25 percent filled newly created positions, and 9 percent filled temporary assignments.
Finding a Job
Direct application to employers remains one of the most effective job search methods. Jobs may also be found through college placement centers, classified advertisements in local and financial newspapers, trade publications, and Internet job listings. Online job opening systems include JobCentral at www.jobcentral.com and CalJOBSSM at www.caljobs.ca.gov.
To find your nearest One-Stop Career Center, go to Service Locator. View the helpful job search tips for more resources. (requires Adobe Reader).
Yellow Page Headings
You can focus your local job search by checking employers listed online or in your local telephone directory. Below are some suggested headings where you might find employers of Financial Managers.
- Credit and Debt Counseling Services
- Financial Planners
- Financial Planning Consultants
- Financial Services
- Financing Consultants
- Insurance Sales Agents
- Investment Management
- Investment Securities
- Stock and Bond Brokers
Find Possible Employers
To locate a list of employers in your area, go to "Find Employers" on the Labor Market Information Web site:
- Select one of the top industries that employ the occupation. This will give you a list of employers in that industry in your area.
- Click on "View Filter Selections" to limit your list to specific cities or employer size.
- Click on an employer for the street address, telephone number, size of business, Web site, etc.
- Contact the employer for possible employment.
Where Could This Job Lead?
Experienced Financial Managers who display a strong grasp of the operations of various departments within their organization are prime candidates for promotion to top management positions. Some Financial Managers transfer to closely related positions such as financial examiners or insurance sales agents in other industries. Those with extensive experience and access to sufficient funds may start their own consulting firms.
Below is a list of occupations related to Financial Managers with links to more information.
|Accountants and Auditors||Guide|
|Insurance Sales Agents||Profile|
|Personal Financial Advisors||Profile|
|Securities, Commodities, and Financial Services Sales Agents||Profile|
These links are provided for your convenience and do not constitute an endorsement by EDD.
For the Career Professional
The following codes are provided to assist counselors, job placement workers, or other career professionals.