Now it is no news that finance is the life source of any organisation as it is a vital part of any business. A financial administrator oversees the financial activities of a business and is responsible for the accounts of the organisation. The financial administrator is one who is responsible for any financially related task of the organisation. They are also responsible for developing the organisation’s financial plan, prepares financial reports and is involved in directing its investment activities. The administrator is also in charge of planning the organisation’s long-term financial goals and protecting assets. They perform budget and payroll dealings, maintain distinct account such as discretionary and grant funding, and maintain accurate financial records for tax-related purposes.
It is the duty of a financial administrator to prepare the organisation’s monthly and annual financial reports. The financial administrator regularly retains the spreadsheets of all the financial activities of the organisation and brings them together into the report at the end of the month or year. The report contains facts about the inflows and outflows of cash in the organisation, which helps in creating accountability in the business. The financial administrator also keeps all the documentation that supports the figures contained in the report, such as invoices and receipts, for auditing purposes. Financial administrators play a substantial role in the success of an organisation. They must distribute resources in a manner that keeps the organisation functioning efficiently without going over and above the financial limits.
Search for your next step on Accountancy Age jobs.
The duties of a financial administrator differ depending on the wants and structure of the organisation that employs them. Although below are a few of the common duties they perform;
As long as finance is the bane of all companies, a financial administrator can work in any organisation provided the organisation uses the money for its daily activities.
To be a successful financial administrator, one must possess a certain number of skills, some of which are going to be outlined below;
Communication skills: a lot of organisations prefer individuals who can thoroughly without leaving out any detail make business language understandable to potential clients who have limited knowledge in the area. For an ambitious financial administrator, extraordinary written and oral skills are important.
If you’re interested in being a financial administrator, look for your dream role here.
Proper work experience and references are vital for ambitious financial managers. Naturally, financial administrators begin their careers in interrelated positions, such as bookkeeping or financial analysis. Financial managers are high-level employees in a lot of organisations and may be promoted from within. Firms that employ financial managers outside the organisation generally look for candidates with appropriate knowledge from a related position. Any work experience associated with finance or business management can be useful. For one to become a financial administrator, one needs at least a bachelor’s degree in finance, business administration or accounting although other education majors may be considered if the involve finance, management or business. Today’s companies prefer to employ individuals with advanced educations like a master’s degree in economics, finance or business administration. Voluntary certification can establish a high level of proficiency, experience, and ability. Many expert certifications exist, like the Chartered Financial Analyst (CFA) designation offered by the CFA Institute. Financial administrators with Bachelors degree and appropriate work experience are eligible to sit for the three examinations that lead to the CFA credential. Certification may lead to further job prospects and career development.
Financial managers are usually expected to have at least five years’ experience in another business or financial related profession such as an accountant, a sales agent or a financial analyst. Although, a few organisations may make available management training programs that will help prepare individuals that are trained and very much inspired to go on and become financial managers. Financial administrators are expected to have an experience with the accounting laws and practices of the state, area, or country where they are employed. Because accounting practices, laws, and stock markets are continually changing, financial administrators frequently enrol in continuing education courses that keep them up-to-date with such changes.
As n individual seeking to acquire the job of a financial manager, one should expect to work long hours but at a salary that exceeds the average salary for most workers. The salary range for a financial administrator can vary widely depending on a lot of very significant factors such as skills, educational background of the individual, number of years of experience and a lot more. The average financial manager in the United States earns around $110,000 annually but the range usually falls between $100,000 to around $130,000. Salary potential can be affected by numerous factors and so can employment opportunities. Those factors include regional market environments and an individual’s educational qualifications and work history.
Employment for financial managers is expected to grow by 19% through 2026, according to the U.S. Bureau of Labour Statistics (BLS). That is at the country’s average probable job development. Individuals with knowledge in accounting and finance, advanced degrees and certifications should have sturdier job prospects. Financial managers normally groom skills in communication, calculation, organisation, and exploration even before graduating from high school. The qualification is an essential first step to procuring the required bachelor’s degree in a money-oriented turf such as finance, economics or accounting, or in the more general business administration. This program of education takes at minimum four years of full-time study to complete. Organisations with principally compound assets, such as brokerage houses or investment banks, may request a master’s degree. This advanced level takes at least two years further than the undergraduate learning period.
Whatever their preliminary education, financial managers seldom reach their positions immediately they get out of college. As an alternative, they need more than five years of experience in a technical financial profession to gain practical knowledge. Obligations at this initial level differ by job title. For example, financial sales representatives buy and sell asset instruments to persons and businesses, while accountants process and record financial dealings. Certification from such national organisations as the CFA Institute can show enthusiasm for more compound and accountable projects, quickening the ascent up the business hierarchy.
Such credentials customarily necessitate an accredited education, work experience and passing an exam. By the time they eventually reach their final positions, financial managers maintain an ultimate charge over their organisation’s funds. They assist department heads to create budgets, find ways to cut costs and increase profits and ensure that their companies meet all industry and government standards. They hire, oversee, sponsor and train lower financial staff such as accountants and auditors. They also prepare financial statements and reports for management, government supervisors and customers. Among the positions that financial managers can assume are controllers who prepare required reports detailing their organisation’s financial positions, the financial officer who manage budgets, risk managers who use investment strategies to prevent financial loss, and insurance managers who agree on the types of protection necessary to defend against calamities.
Take your next career step with our jobs board.