Every successful company requires the services of an expert accountant. This individual uses his/her financial knowledge to suggest efficient money-spending ways. People with critical-thinking and problem-solving skills can strategize any financial situation in the company’s favor.
All corporations need help with their taxes or wish to hear good investment opportunities. In short, financial advisors tell you how and where you should spend your money to multiply it. If you want to be successful in the financial sector, an advanced degree in accounting should be your goal. Let’s discuss the benefits of studying finance, career options for accountants, and job description of a finance professional.
BENEFITS OF STUDYING FINANCE
If you are interested in banking, economy, and investments — finance is the right career. The skills and knowledge you learn in finance come quite handy in many other fields too. Not sure if finance and accounting are suitable subjects for you to study? If you have an analytical and inquisitive mind, you can earn significant progress in this profession. From budgeting to debt management and inheritance to retirement plans, accountants have a huge demand. Some benefits of being in finance are:
- It’s a popular position that is demanded by virtually every other business.
- The income offered by corporations to financial experts is beyond satisfactory.
- You get pretty heavy chances of growing and acquiring a progressive career development.
- There are entrepreneurial opportunities available for financial professionals too.
- There are many diverse career pathways to choose from after you’ve finished your masters in accounting. Let’s talk about a few of these careers below.
CAREERS IN FINANCE AND ACCOUNTING:
Financial careers ensure handsome earning opportunities for students. The BLS and PayScale estimate that the accounting careers salary can exceed $100,000 per year. The corporate world accommodates financial majors in different positions or categories. You can serve individuals by helping them get their “money problems” right. You can work for a company as a contract-based or full-time employee. A few career options in finance are as follows:
- Financial managers: They handle the long-term business goals of an organization. The US Bureau of Labor Statistics claims that financial managers earn nearly $130,000 every year.
- Risk analysts: They are risk managers who identify possible threats in an investment plan. According to the BLS, they can make more than $120,000 annually.
- Financial advisors: They serve individuals personally in managing their finances. The BLS estimates that these professionals can earn more than $80,000 each year.
- Budget analysts: They work for public/private organizations and handle their budgetary needs. They can make more than $70,000 average every year.
- Credit analysts: They assess the credit data and financial statements of their clients. They serve either individuals or organizations. Their annual salary exceeds $70,000, as per the BLS.
CRITICAL ROLES OF FINANCE PROFESSIONALS
A 2018 report by the NCES described business – of which finance is a subset – the third most sought-after college major. It shows how many students realize the significance of a degree in finance and accounting. A finance professional is responsible for multiple monetary operations in a company. These business experts play some crucial roles in ensuring the financial success of their firms. Let’s talk about seven critical roles played by finance professionals in the corporate world:
- Financial health:
Finding out about your financial health is the primary goal of a finance professional. This “health” can refer to the economic situation of your firm or merely your wealth. Financial professionals need to know where you stand right now to suggest something about your future. Therefore, they need you to answer specific questions about things that can affect your monetary advantages.
- Finance monitoring:
A finance professional doesn’t only create an investment plan for you. But also regularly updates your financial portfolio. The professional will hold discussion sessions with the firm’s stakeholders to review the company’s economic progress. But the finance expert’s services go beyond the commercial regime of the company. You must consult the professional when a significant event in your life can affect the company’s future. For instance, marriage or divorce is an important life event. Your finance expert is well-aware of how these “changes” influence corporate interests.
- Financial planning:
The primary job description of a finance professional is to create an effective financial plan for the individual/company. These experts analyze the firm’s present financial situation and consider your suggestions regarding the case. The complete knowledge of your assets, debts, liabilities, and liquidated capital is necessary to create this financial plan. This plan will cover the expenses of your post-retirement life.
- Financial education:
It’s a fact that most Americans are financially uninformed. They badly need someone to guide them regarding their personal and corporate financial decisions. Therefore, financial professionals also act as teachers and educators to their clients. These experts make you understand which factors suite your business interests. This “education” begins with simple budgetary information. But it can lead you to become learned in complex insurance matters.
- Corporate development:
Finance experts deal with corporate development projects. These projects refer to when a company decides to grow and restructure. For instance, a firm wishes to expand its business by constructing another factory. Financial professionals analyze the profitability of the project. They independently assess the project’s fertility. Then they present their research before the management for consideration.
- Risk management:
Every investment plan entertains some level of uncertainty in it. Finance experts need to discover and try to mitigate this uncertainty. When a company wishes to invest its money, it has to deal with some financial risks/threats. A finance expert identifies and eliminates these risks to make business securer. Without discovering and controlling these risks, no investment can guarantee positive returns.
- Financial documentation:
All these responsibilities need to be in the paper as evidence. Finance professionals maintain a record of the company’s transactions. They prepare a money trail for the company’s case getting audited. They make sure that the firm conforms to the laws and regulations of the state. Not abiding by a legal procedure can bring a lawsuit against the company, tarnishing its image and economic stability.
The financial know-how of an average American isn’t remarkable. The 2019 Financial Literacy Survey had some shocking revelations to make. It showed that more than 50% of Americans didn’t have a budget, and 25% were late on their bills. Only one-third of people were capable of responding to basic accounting queries. It shows that the study of finance is still relevant and essential for American society. A person with some noteworthy financial comprehension can easily make considerable advances in the corporate world. This career is booming with expanding opportunities for fresh graduates. The bright future of the financial industry invites students to be an active part of the business sector.