Financial and Investment Manager
Almost every firm, government department, and organization has one or more financial managers who oversee the preparation of financial reports, direct investment activities, and implement cash management strategies.
Financial managers are usually appointed as heads of the financial divisions of companies. The financial division is responsible for recording, analyzing and interpreting financial data. Financial reports are then made available to the relevant people, for example the managing director, the bank manager and the shareholders of the company. The financial division also compiles the annual and other budgets. In addition, this division is responsible for the completion and submission of company tax returns.
The financial division can provide important information on a company's performance. The financial manager sets the cost-standards for the company and regularly checks the actual performance of the company against these standards.
As computers are increasingly used to record and organise data, many financial managers are spending more time developing strategies and implementing the long-term goals of their organization.
The duties of financial managers vary with the level of their seniority. For example, the top financial executives of an organization oversee all financial and accounting functions and formulate and administer the organization's overall financial plans and policies. In small firms, financial managers usually handle all the financial management functions, while in large firms, they direct these activities through other financial managers, each heading up different financial sections, which may include:
- Financial control: This section is responsible for the preparation of financial reports that summarize and forecast the organization's financial position, such as income statements, balance sheets, and analysis of future earnings or expenses; also for the preparation of special reports required by regulatory authorities. This section may also oversee the accounting, audit, and budget departments.
- Treasurer: This section directs and implements the organization's financial goals, objectives and budgets. They oversee the investment of funds and manage associated risks, supervise cash management activities, execute capital-raising strategies to support a firm's expansion, and deal with mergers and acquisitions.
- Cash flow: Here the flow of cash receipts and disbursements are monitored and controlled to meet the business and investment needs of the firm. For example, cash flow projections are needed to determine whether loans must be obtained to meet cash requirements or whether surplus cash should be invested in interest-bearing instruments.
- Risk and insurance: These managers oversee programmes to minimize risks and losses that may arise from the financial transactions and business operations undertaken by the institution. They also manage the organization's insurance budget.
- Credit managers: They oversee the firm's issuance of credit. They establish credit rating criteria, determine credit ceilings, and monitor the collection of past overdue accounts. Managers specializing in international finance develop financial and accounting systems for the banking transactions of multinational organizations.
Investment managers carry out functions closely related to those of financial managers and these positions are often combined. Investment managers determine the best means of investing material and financial resources. They consider the risk of the use of various investment media such as shares, property, deposits, jewellery, diamonds, gold coins, paintings and international currencies.
Computers play an important role in the work of financial and investment managers. These managers have a good deal of administrative work, which includes work with properties, shares, transfers and debentures. Larger firms employ company secretaries and/or transfer secretaries to do the administrative work, but in smaller firms the financial and investment manager is also responsible for this. They may also be required to make calculations, prepare reports, attend meetings, write letters, and accumulate and file records.
Satisfying Aspects
- interesting and fulfilling work
- variety of work
- good remuneration and job opportunities
Demanding aspects
- working very long hours sometimes
- stressful if having to work to very tight budgets
- dealing with demanding or unpleasant people
Requirements
A financial and investment manager should:
- have an aptitude for Mathematics and Accountancy;
- be accurate;
- accurate and have an eye for numerical detail;
- analytical and able to weigh up alternatives carefully;
- able to convey recommendations clearly and accurately
- be an honest person who acts with integrity;
- strategic thinker
- able to take good care of his employer's money and assets and ensure that they are optimally utilised;
- possess the necessary integrity and maturity for such a responsibility.
School Subjects
National Senior Certificate meeting degree requirements for a degree course
National Senior Certificate meeting diploma requirements for a diploma course
Each institution will have its own minimum entry requirements.
Compulsory Subjects: Mathematics, Accountancy
Recommended Subjects: Business Science, Economics
Training
Degree: A BCom degree in any of the following fields will provide the necessary training: Accountancy, Business Management, Business Finance, Cost and Management Accountancy, Economics, Financial Management, Investment Management and Management Accountancy. Prospective students should consult the calendars of the various universities to determine which of these BCom degrees are offered at the university of their choice.
Diploma: The N.Dip. Cost and Management Accounting is offered at CPUT, CUT, DUT, MUT, VUT, NMMU and the N.Dip. Administrative Management at UNISA. Financial Management at most TVET colleges.
The SA Institute of Management offers 1, 2 and 3-year diploma courses. These are offered by accredited private colleges nation-wide. After the first basic course, students can follow specialized training in Management (for example Financial Management or Human Resources Management). Prospective students have to register at the Institute.
Institute of Life and Pension Advisors (ILPA) ILPA offers an advanced course in Investment Management. This is especially suited for persons who want to act as insurance brokers and offers good opportunities for self-employment.
Larger companies will only appoint chartered accountants in their top financial positions. See Chartered Accountant for the training requirements.
Employer
- large and small commercial and industrial firms
- government departments, municipalities
- financial and insurance institutions
- self-employment, for example as financial and investment consultants, insurance brokers, property consultants and stockbrokers
Contact
The Secretary
SA Institute of Chartered Secretaries and Administrators
P O Box 331
Wits, 2050
Tel: (011) 403-2900 Fax: (011) 403-1522
The Secretary
SA Institute of Management
P O Box 31828
Braamfontein, 2017
Tel. (011) 836-5301 Fax: 0866 517 963
www.saim.co.za
www.icsa.co.za