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Finance is one of the most dynamic departments in any organization. The role of a Finance Manager has changed over the years from mere performance reporting personnel to value-adding business partners. Finance Managers have a say in the strategic steps taken by the company as their knowledge is considered pivotal for making informed decisions relating to the business.
They analyze alternative projects that can be undertaken by the company and try to predict the approximate future cash flows that the project would generate. These projects are then compared with each other to know which project is the most profitable for the business.
If you are looking to start your finance career as a Finance Manager, you need to know the role that a Finance Manager plays in an organization and the expected salary that the industry is offering at this point. Finance managers generally earn higher salaries than say a Marketing manager or a Production manager as his role is vital for the smooth functioning of the organization. Finance managers are responsible for providing useful information to upper-level managers that helps them make informed decisions.
Finance managers make forecasts relating to the finances (cash inflows and outflows) of the company. They prepare budgets that contain detailed information about the expected expenditures and revenues that will be incurred and earned during the coming years based on the forecast. Generally, they coordinate with other managers and staff to get an estimate of the future financials of the company.
Once a budget is established, it is the responsibility of a finance manager to monitor the performance of various departments to check whether the actual performance is well under or at least equal to the budgeted levels. They must also make sure that the expected deadlines are met by the staff and various teams. Performance evaluations are conducted to assess and provide feedback to employees.
Finance Managers sit with the top management of the company to discuss the strategies that they would follow in the coming year(s). While taking up projects, there is a constrain of resources and the business has various alternatives to choose from.
A Finance Manager’s job is to analyze these projects and present them to the management in a format that is easily understood by them. The future value of the expected cash flows from the project and the amount of investment required are some factors that are considered during the analysis of a project. Relevant information which helps the managers to take the decision is to be included.
Cash is the running blood for any organization. Making sure that enough cash is available for the organization to cover day-to-day expenses is also one of the jobs of a Finance Manager. Cash inflows and cash outflows are analyzed to estimate a surplus or a deficit that could happen during the year.
In case of a deficit, the manager has to figure out ways to increase the cashflows either by increasing revenue or taking a loan/overdraft from the bank. The same can even be achieved by reducing the cash outflows of the company.
In case of a surplus, the manager looks for other projects and investment opportunities to ensure that the surplus cash doesn’t stay idle with the company.
A Finance Manager is firstly a leader. Thus, they must possess great interpersonal and leadership skills. Finance Managers often need to make presentations in front of their subordinates and superiors. They must be comfortable while speaking in front of a crowd and have good presentation skills. Team leadership and communication are the key skills for a Finance Manager in today’s world.
Apart from the skills, a Finance Manager must possess, most companies require their Finance Managers to have merit in the field. It could either be a Bachelor’s Degree in Finance, accountancy, or any other related areas or a professional course like CMA USA, CPA, and ACCA.
All the certifications have their pros and cons. You must choose a course depending on your area of interest and the type of job you are looking for. These certifications even hold different values in different countries. For example, an ICAI Certified Chartered Accountant from India probably won’t get the same amount of pay outside India as the course holds higher value in India.
There is not just one pathway to become a Finance Manager but many routes one can choose to gain knowledge and certification to end up as a Finance Manager of a company.
Based on 10,558 different salaries of Finance Managers working in various industries, a Financial Manager’s salary varies between ₹ 3.0 Lakhs to ₹ 30.0 Lakhs per annum. The average salary for professionals is therefore around ₹12.0 Lakhs per annum. Thus, on average, a Finance Manager’s salary per month is around ₹5.0 Lakh per month.
Many people wonder about what the starting Finance Manager Salary in India would be. Although starting salaries don’t matter as much as the growth opportunities in the job, knowledge about the same could prove to be helpful to many individuals looking forward to taking up this career path.
In the same survey, it was found that a finance manager’s salary in India for freshers (Less than 2 year of experience) is around ₹9.2 Lakhs per annum. There is a lot of growth opportunity in this field and as you gain experience, you occupy higher designations with an improved salary. A senior finance manager’s salary in India could even average up to ₹14 Lakhs per annum. The highest salary of a Finance Manager Salary in India is ₹30 Lakhs per annum.
Apart from the base salary of the employees, companies tend to provide bonuses, allowances, and benefits to the staff as well. The benefits come in kind in most cases.
Even though the salary that you earn as a Finance Manager depends on staff performance and the paying capacity of the company concerned, these figures give an idea about how much a finance manager is capable of earning in the industry today.
Starting Finance Manager Salary in India on joining is close to 3 Lakhs INR. The salary of a Finance Manager also varies based on the city they are working in. Different cities have different living expenses and based on that; the companies usually pay their employees.
For example, A Finance Manager Salary in Bangalore was seen to be around ₹14.6 Lakhs per annum; which is more than the average salary of Finance Managers in India. Salaries of staff with less than one year of experience vary from ₹5.1-8.4 Lakhs per annum in Bangalore.
The same company might pay a different salary to staff for the same designation based on the city they are posted in. Cities like Bangalore and Mumbai offer higher salaries compared to New Delhi or Chennai. You need to know the city-wise average, highest and the lowest salaries drawn by Finance managers to take the right decision.
Here we have a table representing the salaries that Finance Managers earn across the country (city-wise)
*All figures in (₹ LPA)
|City||Average Salary(per annum in Lakhs) (Rs.)||Highest Salary(per annum in Lakhs) (Rs.)||Lowest Salary (per annum in Lakhs) (Rs.)|
As discussed earlier, not just an individual’s performance but the company’s paying capacity is also an important factor when we look at Finance Manager’s salary. Different companies have different pay packages for their employees. Some of the highest-paying companies in the industry are ITC, Accenture, BT Group and DXC technology.
The company policies also play a role in deciding the salary of its employees. Many companies pay higher salary packages to attract more employees to their company. Higher salaries and perks keep the employees happy and reduce the staff turnover ratio of the company.
Here we have a table representing the salaries that Finance Managers earn (company-wise)
*All figures in (₹ LPA)
|Company||Average Salary(per annum in Lakhs) (Rs.)||Highest Salary(per annum in Lakhs) (Rs.)||Lowest Salary(per annum in Lakhs) (Rs.)|
Companies all around the world need Finance Managers to help them make decisions that are financially viable for the company. Finance Managers are gaining value because of their knowledge and understanding of financial concepts. The demand for Finance Managers is increasing worldwide.
There are a lot of opportunities for Finance Managers in countries like the USA, Canada, Australia and Dubai. They generally earn higher salaries in these countries as compared to India. For example, A Finance Manager Salary in Canada is much more than the Finance Manager Salary in India.
Ranging from $107k to $183k per annum, the median salary of Finance Managers worldwide is $118k. Bonuses range between $10k and $16k. Thus, the total salary they earn is around $117k per annum on average.
To get into the finance space, you have multiple pathways which you can follow and become a Finance Manager for a reputed company. Courses like CPA, CMA and ACCA are suggested to help you gain knowledge and certification for the same. Your journey of becoming a finance professional won’t be easy but worth it for sure. All you need to acquire these top-notch certifications from the most reputed bodies of the world is some guidance and persistence.
At NorthStar, we believe in understanding concepts and applying them to solve even the most complex questions when you sit for your examination. We are the pioneers in the coaching for CMA USA, CPA, ACCA, and many other such certification courses. We provide you with the right direction towards your success.
We strive you impart world-class coaching for our students to deeply understand the whole syllabus and follow proven strategies to score high in these examinations. Preparation with the right mindset is the key to success in competitive examinations. NorthStar Academy will help you attain your academic goals through practice and hard work. For further queries please call +918147470707 to connect with the experts.
Finance Manage analyze alternative projects that can be undertaken by the company and try to predict the approximate future cash flows that the project would generate. These projects are then compared with each other to know which project is the most profitable for the business.
Finance Managers sit with the top management of the company to discuss the strategies that they would follow in the coming year(s). While taking up projects, there is a constrain of resources and the business has various alternatives to choose from. In a nutshell, a Finance Manager’s job is to analyze these projects and present them to the management in a format that is easily understood by them.
The role of a finance manager has changed over the years from mere performance reporting personnel to value-adding business partners. Finance Managers have high growth prospects as you can climb up the hierarchical setting in a company and play a key role in the decision making. Finance Manager Salary varies between ₹ 3.0 Lakhs to ₹ 30.0 Lakhs per annum.
As you gain promotions and take up higher designations in the organization, you see a simultaneous increase in your salary as well.
Like any other profession, salary depends on competence and performance but apart from that, some other factors determine your salary as a Finance Manager.
Your salary may vary depending on the city you are working in.
There are drastic changes in salaries in different cities of India. For example, A Finance Manager’s Salary in Bangalore was seen to be around ₹14.6 Lakhs per annum; which is more than the average salary of Finance Managers in India. The same company might pay a different salary to staff for the same designation based on the city they are posted in. Cities like Bangalore and Mumbai offer higher salaries compared to New Delhi or Chennai.
The salaries also vary depending on the company. Different companies have different policies relating to their staff salaries. Some companies like ITC and BT Group pay high salaries to their Finance Managers compared to other firms.
Experience has a high value in the field of Finance. As you grow in your career and take up higher posts in the organization, you start drawing higher salaries with time. Even companies prefer experienced personnel as their Finance Managers because finance is the most important department in the company
The efficiency and expertise in the Finance department can decide whether the company would be profitable or not. Based on 10,558 different salaries of Finance Managers working in various industries, the highest Finance Manager Salary in India is ₹30.0 Lakhs per annum.