You're a financial manager. What skills do you need to succeed?

The ability to analyze financial data, make budgets and predictions, and understand reports is critical for a financial manager. Proficiency with financial software and tools is also required, as is a firm understanding of accounting principles, practices, and systems. Staying abreast of the most recent financial and business trends is essential if you want to be successful in your sector.

To succeed as a financial manager, one needs a combination of technical expertise, soft skills, and leadership abilities. Essential skills include financial analysis, strategic thinking, communication, leadership, decision-making, time management, adaptability, interpersonal skills, ethics, and compliance, as well as analytical thinking.

A financial manager in SME plays a primary role in guiding the company toward growth through sound financial practices. Beyond overseeing the accounting processes, this individual must have a strong understanding of financial KPIs that are crucial to the industry in which the business operates. For example, in the media production sector, analytical accounting can be particularly useful in tracking key metrics such as the gross profit for each production/project. This allows the company to maintain a clear view of profitability. Additionally, the financial manager must keep a close eye on non-monetary costs like amortization and depreciation, which, while not a monetary cost, have a significant impact on the overall cost of production.

The ability to analyze and solve complex problems is essential for every financial management. You must be proficient with a variety of analytical tools and have a strong grasp of financial data collecting, organization, and analysis. Evaluating financial performance, seeing opportunities and threats, and providing workable answers to problems that develop within the company are all areas in which you should really shine.

In practice, it's crucial for all stakeholders (management, shareholders, employees) to understand the 'why' behind any changes. Involving everyone ensures support and alignment, especially in large-scale transformations. Transparency breeds trust and collaboration, fostering a smoother transition and greater success

Explaining the purpose and benefits of budgeting and forecasting to your team is crucial for fostering understanding and motivation. By articulating why it's done, the expected outcomes, and its positive impacts, you create a shared vision. This not only motivates participation but also emphasizes how it improves efficiency, reduces costs, boosts revenue, and enhances customer satisfaction, ultimately benefiting both the team and the organization.

To be effective in their positions, financial managers need excellent public speaking and presenting skills. Your ability to clearly convey complex financial information is essential for many audiences, including investors, regulators, and senior management. You need to be able to articulate complex ideas clearly and convincingly in writing and verbally, and you should have experience creating compelling financial reports and suggestions. Paying close attention to what other people have to say and incorporating their feedback into your job will help you become a better communicator and employee overall.

One of the most essential skills a financial manager must have is the ability to effectively communicate financial data to colleagues who do not have a financial background. This can be challenging, as many may lack the foundational knowledge needed to fully grasp complex financial concepts. A key tool to overcome this challenge is the use of clear and engaging data presentations, coupled with the ability to simplify and explain complex financial metrics in an accessible way. By breaking down intricate data into understandable terms, the financial manager ensures that everyone in the organization can make informed decisions based on the financial insights provided.

To be successful as a financial manager, you need to have excellent leadership and teamwork skills. In order to do this task, you will need to form a team of specialists, delegate tasks, and set certain financial goals. The company's financial plan is harmonized when several departments work together.

Maintaining complete compliance with all legislation and the highest ethical standards are crucial to your success as a financial manager. Adherence to all relevant laws and regulations, in addition to business philosophy, ensures candor and transparency in monetary transactions. Protecting stakeholders' financial data should be a top priority in order to establish confidence with them.

One key factor that sets financial managers apart from other roles is the high level of responsibility they carry. This is particularly true when dealing with stakeholders such as regulators. Financial managers are tasked with ensuring the accuracy and transparency of financial data, both in accounting records and in reports presented to auditors and authorities. Their role is critical in maintaining compliance and upholding the integrity of the company's financial information.