Any business requires money to function, whether a newly started business or a multinational company. It must spend money on inventory and materials, facilities and equipment, and employee salaries and wages. After finishing this kind of money, the business can earn money. As a result, finance is crucial to the growth of all companies. It may not be as noticeable as marketing, sales, or production. Still, financial management is just as essential to a company’s success.
Financial management involves planning, arranging, guiding, and supervising the company’s financial dealings, such as procurement and implications of funds and managing cash flow. It consists of implementing general management principles to the company’s financial resources.
Who is a Financial Manager?
Financial managers are in charge of an organization’s financial health. They create financial statements and significant investment opportunities and establish strategies and policies for their company’s long-term financial targets.
A Finance Manager distributes an organization’s current financial resources, involves in the budget planning of business, and assists the management team in making better business strategies for the company by providing insights and financial advice. The role of the financial manager includes assisting executives in making strategic plans that affect the company. This task necessitates reasoning thinking as well as excellent communication skills.
Finance Manager Qualifications
Financial managers are responsible for the financial health of the company. The company’s finances depend on the financial manager, so they must be highly educated, skilled, and trained. A position as a finance manager necessitates the following qualifications:
Certifications
Some employers prefer specific certifications. You can get certified in corporate finance, finance management, global economics, or portfolio management. After earning a Bachelor’s degree, you can go for the Chartered Accountancy (CA) certification course.
Training
Most of the training for this role takes place in an entry or beginner-level positions. Students can seek summer internships with local businesses to apply theoretical knowledge and learn skills on the job while pursuing a college education.
Education
Employers frequently require candidates for the position of financial manager to have a bachelor’s degree in accounting or finance. That is why completing your education hours with subjects like accounting, finance, and economics is preferred if you want to pursue a career as a financial manager. Financial planning, financial management, and securities are common topics in the curriculum.
You can also pursue a Master of Business Administration (MBA) degree in finance or related fields. You could also pursue a master’s or doctoral degree in a related field, like finance or economics.
Skills
There are several skills required to play a role of a financial manager in any organization, which are as follows:
- Communication skills: Financial managers must communicate verbally and in writing. You should be prepared to describe complicated financial transaction records and concepts efficiently.
- Analytical skills:These are the skills used to obtain and evaluate information, solve problems, and make decisions. Financial managers use these abilities to assist company directors in making decisions or play a role in affecting the entire organization as financial managers.
- Organizational abilities: Financial managers frequently must work on multiple tasks, data sets, and worksheets simultaneously. So, they should have organizational skills to play their role as financial managers.
- Numeracy skills: Basic mathematics knowledge and the ability to solve different accounting and numerical problems are essential to financial management roles.
Financial Manager Average Salary in Dubai
A Financial Manager in Dubai can expect to earn around 45,600 AED per month. Salaries range from 23,200 AED, the lowest a finance manager makes, to 70,200 AED, the highest a finance manager earns.
This is the monthly average salary, which includes housing, transportation, and other perks. Salaries for Financial Managers vary greatly depending on expertise, abilities, gender, and location. The critical factor in determining compensation is the level of experience. Naturally, more experience means you can get paid higher. We generally calculate Financial Manager salaries based on experience level.
Role and need of a Financial Manager in an Organization
Types and Roles of Financial Managers
Financial management is a vast field with various roles and functions. So, different types of financial managers fulfill these roles and serve the organization for their betterment. The following are different types of financial managers:
- Controllers assist in creating different reports that can be used for financial planning and prediction of the organization. They advise and give instructions on creating statistics such as balance sheets and income statements.
- Finance and treasurer officers are responsible for the organization’s budget and various investment activities.
- Credit managersare in charge of a company’s credit management function.
- Case managers assess the organization’s cash flow to make different investment decisions.
- Risk managers assist organizations in reducing financial distress by implementing various risk-management strategies.
Role of a Financial Manager in Organizations in Dubai
The financial manager serves various roles for the betterment of the organization. Following are the primary roles a financial manager plays for an organization:
- Fund Raising
Proper cash flow and resources are critical to meeting the business’s obligations. A company can raise funds through both equity and debt. A financial manager is responsible for determining the right strategy for raising funds. A financial manager’s essential role is to maintain a healthy balance of equity and debt.
- Fund Distribution among different sectors of the Organization
After funds are raised through various channels, the following critical function is distributing the money. The funds should be distributed in such a way that they are used to their best advantage. The following vital points must be kept in view while distributing funds as efficiently as possible.
- Cash flow and capacity for growth of a firm
- Assets and other resources of the organization
- Methods through which funds are raised
These financial decisions have an impact on other managerial activities both directly and indirectly. As a result, one of the essential roles of a financial manager is creating a good assets report and adequately distributing funds.
- Cash Management
An essential role of a financial manager is the handling of cash. It includes predicting cash flow to ensure that the firm has neither a funds shortage nor surplus procurement of funds. Enough funds should always be present in an organization to ensure the management of operational activities.
- Creating Financial Documentation
Financial managers develop and deliver financial documents such as reports, statements, and forecasts based on their data and findings. Financial managers play this role for the benefit of their organization.
- Advising Senior Management
A finance manager advises administrators, company leaders, and other decision-makers on financial matters. This increases the value of the financial manager in an organization.
- Financial Management Evaluation
Financial performance evaluation is another crucial role of a financial manager in an organization. The overall evaluation criterion is Return on Investment (ROI). Other economic evaluation techniques include budget control, price transparency, auditing, and financial analysis. The financial manager must also prioritize financial planning.
- Profit Planning
Profit generation is one of the essential functions of any business. Profit generation is critical to the survival and durability of any organization. Profit planning is the proper use of the firm’s profits. A financial manager’s significant responsibility is to strategize to generate profit for an organization.
Need for a Financial Manager for an Organization in Dubai
Every business organization requires a financial manager to oversee its financial resources and ensure they are used to their full potential. We have explained the need for the financial manager for an organization in Dubai below:
- Maximizes the value of the Organization
The financial manager works hard to maximize and enhance the organization’s value and assets, such as stocks and shares.
- Maintains Growth of the Organization
The financial manager aims to achieve growth by properly utilizing profits and distributing funds efficiently.
- Maximizing profits
The financial manager assists the organization in earning maximum profit while avoiding unnecessary financial expenditure.
- Avoiding bankruptcy
The primary goal of every financial manager is to keep an organization stable and running in any way possible. It protects it from further economic instability such as bankruptcy, etc.
How can Lynchpin help?
Lynchpin is one of the best auditing and accounting firms in Dubai. We provide professional financial services to our clients with the help of our experienced financial professionals. We always look forward to helping you solve any accounting and economic problems. Lynchpin provides you with a variety of services in one place. It is known for its personalized approach to dealing the customers. If you are interested in our services, contact us as soon as possible.