Introduction
Finance managers are responsible for overseeing and managing financial operations within a company or organization. These professionals are highly sought after due to their ability to help businesses maximize profits, reduce costs, and make sound investments. As such, finance managers typically command high salaries and lucrative benefits packages.
According to the Bureau of Labor Statistics (BLS), the median annual wage for finance managers was $129,890 in 2019. The highest 10 percent earned more than $208,000 while the lowest 10 percent earned less than $66,790. However, this figure doesn’t tell the whole story, as there are a variety of factors that can influence the pay of a finance manager.
How to Maximize Your Salary as a Finance Manager
While many finance managers earn a good salary, there are several steps you can take to maximize your earning potential. Here are some tips for doing just that:
Negotiating Salary
When negotiating salary, it pays to be proactive. According to a survey conducted by Glassdoor, 64 percent of job seekers who negotiated their salary received an increase. Research the going rate for similar positions in your area and use that information to your advantage when negotiating.
Seeking Additional Certifications
Earning additional certifications can help you stand out from the competition and give you leverage when negotiating salary. For example, the Chartered Financial Analyst (CFA) credential is highly sought after in the finance industry. Earning this certification can open up new opportunities and potentially lead to higher salaries.
Working in High-Demand Industries
Certain industries tend to pay higher salaries than others. For example, finance managers working in banking and finance tend to earn higher salaries than those working in other industries. Additionally, working in a field with a high demand for finance professionals can also lead to higher salaries.
Factors That Influence the Pay of a Finance Manager
In addition to the tips mentioned above, there are a variety of other factors that can influence the pay of a finance manager. These include:
Location
Location can be a major factor in determining salary. For example, finance managers in New York City tend to earn higher salaries than those in other parts of the country due to the higher cost of living in the area. Additionally, certain states may offer higher salaries than others due to the availability of jobs in the area.
Type of Company
The type of company you work for can also have an impact on your salary. For example, finance managers working for large corporations tend to earn higher salaries than those working for small businesses. Additionally, certain industries such as banking and finance tend to pay higher salaries than other industries.
Level of Responsibility
The level of responsibility you have can also affect your salary. For example, finance managers who are responsible for a company’s entire budget tend to earn higher salaries than those who are only responsible for a specific department’s finances. Additionally, finance managers who have supervisory responsibilities tend to earn more than those who do not.
A Comparison of Regional Salaries for Finance Managers
Salaries for finance managers vary widely depending on the region. According to a recent study by the Robert Half Accounting and Finance Salary Guide, finance managers in New York City earned an average of $166,750 per year, while those in Los Angeles earned an average of $159,500. Finance managers in Chicago earned an average of $148,000, while those in Dallas earned an average of $142,000.
Additionally, cost of living adjustments must be taken into consideration when comparing salaries across regions. For example, while the average salary for a finance manager in New York City is higher than that of a finance manager in Dallas, the cost of living in New York City is also much higher. This means that the purchasing power of a finance manager in New York City may not be as great as that of a finance manager in Dallas.
Education and Experience Requirements for Finance Managers
To become a finance manager, most employers require at least a bachelor’s degree in business or accounting. Additionally, professional certifications such as the CFA can help you stand out from the competition and give you leverage when negotiating salary. Relevant work experience is also important, as employers typically prefer to hire finance managers who have prior experience in the field.
Conclusion
Finance managers play an important role in helping businesses maximize profits, reduce costs, and make sound investments. As such, they typically command high salaries and lucrative benefits packages. The average salary for a finance manager varies depending on a variety of factors, including location, type of company, and level of responsibility. Additionally, cost of living adjustments must be taken into consideration when comparing salaries across regions. To become a finance manager, most employers require at least a bachelor’s degree in business or accounting, professional certifications, and relevant work experience.
This article provided an overview of the average salaries for finance managers and explored the various factors that influence their pay. It also examined regional differences in pay, as well as the education and experience requirements to become a finance manager. For more information on salaries for finance managers, it is recommended that further research be conducted.
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