Scope of Financial Management in India
- Without money there can be no trade, no economic system and thus no business. Money is one of the key elements to starting a business and without it no business can sustain. Hence it is very important to understand how to manage one’s finances.
- Financial Management deals with managing one’s money essentially. It is easy to spend money at one go but how to invest it and how to gain more money by investing, that is what financial management teaches. A Financial Manager thus play a very vital role in the working of a company and is required to plan the amount of money which is required to be invested and also understands the benefits which such investment shall reap.
- A Financial Manager looks into cutting losses and other loss making investments and makes investments which will bring benefit to both companies and individuals.
- In a time of economic depression, Financial Managers have a crucial role to play in the financial condition of a company. It is not just about earning money alone it is also about dealing with the money and putting the money into proper use to reduce loss and increase market viability.
- Financial Managers have a very important and critical role to play in the success of a company.
- To take Financial Management as a career, the candidate has to complete their 10+2 in any stream preferably with a combination of economics, mathematics and statistics and then apply for any course.
- For undergraduate courses like any stream can be pursued but preferably a degree in economics, business administration or management or even accounts enables the candidate in the said field.
- For postgraduate courses, one is required to pursue an MBA degree in Financial Management after appearing for All India Entrance Exams like CAT, XAT, MAT, ATMA, etc.
- One can pursue a post graduation diploma course in Financial Management.
A Financial Manager has no dearth of employment. A Financial manager can apply as a Finance Controller who takes care of the accounting and the financial reports or as treasurer who keeps a track of the financial status of the company or as the Chief Financial Officer or CFO who is in charge of the overall financial buoyancy of the company as well as the Cash and Credit Manager. One can also apply as Insurance manager or Risk Manager.
Employment for a financial manager can be sought in the following places:
- Multi National Companies
- Utility departments
- Corporate houses
- Financial Institutions
- Private sector Industries
- Government industries
To be a Financial manager, one must have few basic skills. They are as follows:
- The person should have excellent communication skills.
- He should have good observation power in analyzing the prevalent market trends to enable the company to go forward
- Good observation skills are required
- The person should be a team player.
- A Financial manager must be calm, constructive and collected as they have to deal with different types of people and temperaments.
- Must possess excellent administrative skills
- Must be aware of the legalities which are involved with a company
- A Financial manager must be extremely flexible to take various inputs and understand which input would be necessary to solve an issue.
- A Financial manager must be patient while dealing with crisis.
- A Financial manager must be very perceptive and eager
- A Financial manager must have quick instincts and basic knowledge of how to handle situations
- A Financial manager must essentially be good with money and finances
- To pursue a career in Finance, the candidate must have completed their 10+2 in any stream preferably in economics.
- Thereafter must apply for any course during graduation and thereafter pursue a master’s course in Finance.
The person who will be engaged in the work of a Financial Manager has to do the following work:
- He has to have a good idea of the present market scenario which include the Sensex of different countries and the impact on the present market
- He needs to verify and check the prevalent market conditions before making any investment as it will affect the company’s business in the long run
- A Financial manager must know how to take care of problems related to the finances of a company.
- As a financial manager he must know how to shoulder responsibilities
- A financial manager must be patient and calm while dealing with crisis of any nature relating to the finances of a company
- A financial manager must know what financial plan will benefit the company
- A financial manager should know when to liquidate assets and when to acquire a good investment
A financial manager has a flourishing career. Various job opportunities are there in this field.
- A fresher from a reputed business school can get a salary approx. Rs.3lacs/- to Rs. 3.5lacs /- per annum.
- An experienced financial manager who has been an intrinsic part of a company can earn in lakhs.
- An individual consultant can charge for various packages as per demands.